Dear customers,

We would like to inform you about the latest developments regarding the upcoming steel and aluminum tariffs in the USA. A brief summary is provided below:

• The country of origin tariff for steel products is 25% worldwide. For Turkey, the rate is 50%, and for Russia, it is 200%.
• Proof of origin is based on the proportion and value of the derived ingredients in the manufactured end products. The invoice must specify the exact composition, material content, and corresponding values.
• Severe penalties will be imposed for forged documents or declarations. Mill certificates are mandatory; otherwise, no application can be submitted.
• If the steel or steel composition was manufactured in the USA, it is exempt from customs duties, but proof of origin must be provided.
• There appear to be no changes to the quota limits.
• There shall be no refund of duties paid under this tariff.
• All previous trade agreements that provide for exceptions shall be repealed. Individually approved temporary exceptions shall remain valid until their expiry date or until the approved quantity has been reached.
• Only domestic steel producers or industry associations may apply for exemptions, but there is no guarantee that they will be granted.
• The expected date of entry into force is March 12, 2025.

All of the information provided is based on the information available to us as of today (as of February 17, 2025). We will, of course, keep you informed about further developments. We are happy to answer any questions you may have about your customs clearance and logistics requirements. Feel free to contact us at any time!

M.G. INTERNATIONAL

On October 1, 2024, the International Longshoremen's Association (“ILA”) went on strike. The two parties are at an impasse and there are currently no plans to resume negotiations. The main points of contention are automation, which the ILA rejects out of concern for job losses, and wage demands. Citing recent profits by shippers, the ILA is demanding a 76% wage increase over a six-year period.

This strike is affecting ports on the East and Gulf coasts of the United States and is causing significant disruptions to maritime traffic, with delays in ship and cargo operations. At this time, the duration of the strike and the extent of its impact are unknown. In addition to delays, there could be changes in loading and unloading ports, as well as other factors that could affect costs related to handling, storage, and transportation.

Dear customers,

We would like to inform you that a major strike is highly likely to take place in almost all ports on the East and Gulf coasts of the USA. The strike is scheduled to begin on September 30, 2024. The current contract with the ILA (International Longshoremen's Association) expires at midnight on Monday, September 30. A strike in ports from Boston, MA, to Brownsville, TX, is foreseeable. There has not been a strike in the ports of the East and Gulf coasts since 1977.

Should a strike occur, it will lead to another major disruption in the supply chain and cause a multitude of problems for any cargo transported through these ports. Many shipping companies are not accepting export bookings for ships sailing after October 1. They fear that containers could pile up in the ports in the event of a strike. Shipments arriving at or departing from ports on the west coast of the US or Canadian ports are not expected to be affected by a strike.

We are monitoring the situation closely.