Thanks for reading the Ram Alloys Monthly Nickel and 316L s/c update, intended to help our valued customers make educated business decisions.

THE FOUR (4) TRUMP TARIFFS

• One - Drug War:
• • Validity OVERRULED by SCOTUS Ruling
  • Fentanyl Tariffs on China, Mexico, Canada all ruled Illegal - Read More Below!!
• Two - Steel War: INCREASED TO 50% Section 232 Tariff on all COPPER, Steel and Aluminum
• • Validity NOT subject to upcoming Supreme Court Ruling
  • Began March 12th - Original Tariff = 25%
  • Quotas Eliminated. Exemption Process Terminated
  • Excluded and separate from SUPREME COURT Trade War Reciprocal Tariffs
  • June 4th: Tariff Rate Raised to 50%
  • Except for UK - remains 25% while they negotiate (still negotiating)
  • Tariffs for "derivatives" of steel and aluminum remain difficult to analyze, as either reciprocal or Section 232 tariffs apply, but the method for applying either is unclear
  • August 1, 2025: Copper added to the 50% Section 232 tariffs, along with steel and aluminum
• Three - Trade War: Reciprocal Tariffs
• • Validity OVERRULED by SCOTUS Ruling
  • All global reciprocal tariffs ruled Illegal
  • Trump imposed a different global tariff under new codes - Read More Below!!
• Four - BRICS Tariff (new - threatened)
• • July 7, 2025: President Trump threatened a new tariff "an additional 10% tariff on countries that orient themselves along the 'Anti-American policies of BRICS."
  • Meaning, application, interpretation, impact, etc.
  • BRICS of course stands for: Brazil, Russia, India, China, and South Africa
  • Other members include Saudi Arabia, Egypt, Iran, Ethiopia, the United Arab Emirates, and Indonesia
  • BRICS Partner Countries: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam
  • Since July 7th, Brazil has been hit with higher tariffs (no 40%) and India has been threatened with an additional 100% tariff due to their Russian energy purchases
  • New Indian Trade Deal muted this threat...for now
  • The "Sanctioning Russia Act" currently before the Senate contemplates up to 500% tariffs
• Five - New Section 122 Tariffs
• • Replace the Trade War Reciprocal Tariffs
  • Started at 10%, immediately raised to 15%
  • Never been used before
  • Temporary: Valid for imports starting 2/24 + 150 days
  • Expires: 07/24/2026
  • May 7, 2026: Struck down by the U.S. Trade Court

Tariffs SCOTUS Trial FINAL RULING U.S. v Iran Conflict News Section 232 New Guidance

Tariffs SCOTUS Trial: News and Final Ruling

On February 20th, the Supreme Court of the United States ruled that President Trump's global reciprocal tariffs and fentanyl tariffs were unlawful. They stated that the IEEPA (International Emergency Economic Power Act) does not authorize Trump to impose those tariffs, as it "exceeded" his presidential authority. It is important to note that this ruling DOES NOT AFFECT Section 232 tariffs on Steel. 

On February 20th, Trump announced he would impose a temporary 10% global tariff under Section 122 of the Trade Act of 1974. This took effect on February 24th, where it allows for a temporary 10% tariff on most imports for up to 150 days. A few days later, the Trump administration increased the rate to 15%. 

The IEEPA refund process was recently published, so please consult your legal and logistics associates for instructions and availability.

Section 122 Tariffs Successfully Legally ChallengedNationally, the ongoing U.S.–Iran conflict has become a major driver of volatility in global crude oil markets, with prices surging above $100/barrel as fears grew over disruptions to the Strait of Hormuz—a critical shipping route that carries roughly 20% of the world’s oil. 

Around April 7th, prices briefly dropped due to signs of a temporary ceasefire. A few days later, Iran announced they are reclosing the Strait of Hormuz due to a violation of the ceasefire agreement. However, prices remain very much elevated compared to pre-war levels due to lingering uncertainty, supply chain disruptions, and slow recovery in shipping and refining capacity. This situation remains very fluid as news is changing day to day, but expect prices to be volatile in the months ahead. 

Why is this important? Commodity prices, specifically nickel, track oil prices, so expect a future increase (see chart below). 

Section 232: New Guidance 

Yesterday, the U.S. Trade Court, in a 2-1 decision, ruled in favor of Twenty-four (24) states who successfully challenged President Trump's Section 122 Tariffs. The judicial panel found the tariffs unlawful on the basis that the Government did not prove there was a "deficit in he U.S.'s balance of payments.". When asked about the decision, President Trump said "We always do it a different way;" "We get one ruling, and we do it a different way."

U.S v Iran Conflict

Nationally, the ongoing U.S.–Iran conflict has become a major driver of volatility in global crude oil markets, with prices surging above $100/barrel as fears grew over disruptions to the Strait of Hormuz—a critical shipping route that carries roughly 20% of the world’s oil. 

The ongoing carrousel of ceasefire and Strait closure compounds the frustration of uncertainty. Recent reports of the war reigniting indicate the end may not be near.

Why is this important? Commodity prices, specifically nickel, track oil prices. Additionally, the Middle East region accounts for ~25% of global sulfur production, which is a critical ingredient for nickel refining. As such, expect a future increase!

Section 232: New Guidance

On April 6th, the government published new Section 232 guidance, mostly concerning derivatives, metals classifications, changes in country of origin application, etc.

Bad news, nothing changes regarding the Steel War Tariffs, which remain 50% on all Copper, Steel and Aluminum.