U.S. Tariff War Escalates!

200% Punitive Tariffs on “Aluminum Products of Unknown Origin” Begin June 28

G7 Summit on July 9 May Mark a Global Trade Turning Point

🗓️ Background

As the July 9, 2025 deadline for former President Trump’s global tariff overhaul approaches, the U.S. has intensified enforcement under Section 232. A new directive mandates a 200% punitive tariff on derivative aluminum products with unidentified countries of smelt or cast. This rule takes effect on June 28, 2025, creating significant pressure on businesses relying on Chinese and other low-cost aluminum imports.

🔍 Customs Rule Explained: Section 232 on Aluminum

Effective June 28, 2025, importers of derivative aluminum products must declare:

  -  The ISO country code of both the country of smelt and country of cast;

  -  If unknown, “UN” must be entered;

  -  Products will be classified under HTS 9903.85.67 or 9903.85.68;

  -  Missing or incorrect data will trigger ACE system errors (856 or 60B) and entry denial.

If the origin is listed as “UN,” a default 200% tariff under Section 232 will apply — a rate previously reserved for Russian aluminum.

🧾 What Are “Derivative Aluminum Products”?

Not traditional raw materials, but downstream aluminum components, including:

  -  Aluminum foil pouches and can lids;

  -  Internal aluminum parts in home appliances;

  -  Fasteners, brackets in automotive, electronics, and motor industries.

China, as the world’s largest aluminum processor/exporter, will be deeply affected — especially OEMs, private label exporters, and cross-border e-commerce sellers.

🔴 Trump’s "Blacklist & Whitelist" Strategy

🌐 Global Retaliatory Tariffs Brewing

Current Negotiation Status:

  ✅ UK: Partial deal reached, tariffs reduced;

  ❌ EU: Talks stalled;

  ❌ China: Silent, but retaliation list reportedly prepared.

🇬🇧 The UK: Lone Beneficiary?

Special Terms Secured:

  -  Aerospace tariffs → 0% (previously 5–15%)

  -  100,000 UK vehicles → 10% tariff (down from 27.5%)

  -  Beef import quota → 13,000 tons duty-free

Hidden Cost:
Steel and aluminum tariffs of 25% remain, impacting $1.2B annual exports.

🔁 Global Supply Chain Shifts

  -  Mexico nearshoring boom: Q1 2025 FDI ↑ 165%

  -  China/EU/Canada planning retaliatory duties on U.S. agriculture/energy exports post-July 9

  -  Retail sector hit hard: Hasbro to cut 3% workforce, citing higher toy tariffs from China

⚖️ Trump’s Tariff Powers Under Fire

Legal Forecast:

If the Supreme Court hears the case in July, it may undermine the legal foundation of Trump’s tariff regime.

📋 What Should Businesses Do Now?

1. Trace Product Origins Immediately

  -  Request smelt/cast origin documentation from suppliers

  -  Convert origin data into ISO codes to avoid misclassification

2. Avoid Using “UN”

  -  Automatically triggers 200% tariff

  -  Increases customs rejection risk and operational cost

3. Re-evaluate Tariff Pass-Through & Product Strategy

  -  Consider FOB/Mexico shipping options

  -  Model cost impact across product lines under potential tariffs

🤝 SSR GROUP Is Here to Help

Trade policy is changing rapidly. July 9 could be the turning point. Act now to stay ahead!

SSR GROUP – Qingdao Shengshi Tongzhou International Logistics

We offer:

  -  Professional customs risk analysis

  -  Standardized Certificate of Origin templates

  -  Dispute resolution and U.S. customs brokerage support

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“The tariff tsunami from the White House is rewriting corporate destinies.
Some are laying off staff, some are relocating factories overnight,
others are gambling everything on negotiations.
In the eye of the storm, the clock ticks — and July 9 draws near.”