Section 232 Tariffs Explained: Steel and Aluminum Import Duties in 2026
What Are Section 232 Tariffs?
Section 232 tariffs are additional duties imposed by the United States on imports of steel and aluminum products under Section 232 of the Trade Expansion Act of 1962. The statute authorizes the President to adjust imports through tariffs, quotas, or other measures when the Department of Commerce determines that imports threaten national security.
The original Section 232 actions began in March 2018, when President Trump imposed a 25% tariff on steel imports and a 10% tariff on aluminum imports under Presidential Proclamations 9704 and 9705. In 2025, the Trump administration significantly expanded the scope and rates: steel tariffs increased to 50% and aluminum tariffs increased to 50%, applied to a broader list of derivative products. The expanded measures took effect on June 4, 2025.
The Bureau of Industry and Security (BIS) within the Department of Commerce administers Section 232 product exclusions through the Section 232 Exclusions Portal at bis.doc.gov/index.php/232-steel. Customs and Border Protection (CBP) collects the duties at entry under Chapter 99 HTS subheadings 9903.80 (steel) and 9903.85 (aluminum).
Which Products Are Covered?
Section 232 covers two broad categories: primary metal products and derivative articles. The product scope is defined by specific HTS codes published in the Federal Register.
Steel products (Chapter 72 and parts of Chapter 73):
Flat-rolled steel, long products (bars, rods, structural shapes), tubes and pipes, semi-finished steel (slabs, billets, blooms), stainless steel products, and tool steel. The complete list is published in Presidential Proclamation 9705 and updated through subsequent proclamations.
Aluminum products (Chapter 76):
Unwrought aluminum, aluminum bars, rods, profiles, wire, plate, sheet, strip, foil, tubes, pipes, and aluminum castings and forgings.
Derivative articles (added 2020 and expanded 2025):
Steel nails, tacks, bumper stampings, body stampings, aluminum cable, stranded wire, electrical conductors, and an expanded list of finished goods that contain significant steel or aluminum content. The 2025 expansion added approximately 200 new HTS codes covering machinery components, fasteners, and structural fabrications.
Country Coverage and Exemptions
Unlike Section 301, which targets only China, Section 232 applies globally. However, the United States has negotiated bilateral arrangements with several trading partners that modify the standard rate.
Tariff-Rate Quota (TRQ) arrangements: The European Union, United Kingdom, and Japan operate under TRQ agreements that allow specified volumes of steel and aluminum to enter at lower rates, with above-quota volumes subject to the full 50% duty. Quota volumes are allocated quarterly and tracked at cbp.gov/trade/quota.
Exempt countries (subject to change): Australia received a permanent exemption from Section 232 steel and aluminum tariffs by Presidential Proclamation. Canada and Mexico were exempted from the original 25% rates under USMCA-related arrangements but were re-included under the 2025 expansion at modified rates.
Standard 50% rate countries: All other countries of origin pay the full 50% duty on covered HTS codes. This includes major exporters such as Brazil, India, Vietnam, South Korea, and Turkey.
How Section 232 Duties Stack with Other Tariffs
Section 232 duties are imposed in addition to the standard MFN (Most Favored Nation) duty rate published in the Harmonized Tariff Schedule. They are also additive with Section 301 China tariffs and IEEPA reciprocal tariffs where applicable.
Example calculation for a Chinese-origin steel product with HTS 7208.10.0000 (hot-rolled flat steel):
MFN duty rate: 0% (free)
Section 232 steel duty: 50%
Section 301 List 3 duty: 25%
IEEPA reciprocal duty (China): variable, currently applicable
Total ad valorem duty: 75% plus IEEPA
Importers must declare each applicable Chapter 99 HTS subheading on the entry summary (CBP Form 7501) in addition to the regular Chapter 1-97 classification. Failure to declare Section 232 duties at entry results in liquidated damages and potential penalties under 19 U.S.C. 1592.
Product Exclusions and Drawback
The Section 232 Exclusions Portal allows importers to request exclusions for specific products that are not produced in sufficient quantity or quality in the United States. Exclusions are product-specific, importer-specific, and time-limited (typically one year, renewable).
Approved exclusions are identified by exclusion numbers that must be reported on entry summaries. The exclusion list is publicly searchable. Denied exclusions can be appealed within 30 days of the determination.
Drawback is generally not available for Section 232 duties paid on merchandise that is subsequently exported or destroyed, per 19 U.S.C. 1313(j)(2) restrictions added by the Tax Cuts and Jobs Act of 2017. This is a critical planning consideration for importers operating Foreign Trade Zones (FTZs) or bonded warehouses.
Foreign Trade Zone (FTZ) Treatment
Section 232 duties apply when merchandise enters US Customs territory from an FTZ. Goods admitted to an FTZ before the effective date of a Section 232 action are subject to the rate in effect at the time of withdrawal, not the rate at admission. This eliminates the historic FTZ benefit of locking in lower duty rates for Section 232 merchandise.
Privileged Foreign (PF) status, which normally allows importers to fix the classification and duty rate at the time of admission, does not apply to Section 232 duties. Importers using FTZs for steel and aluminum operations should review CBP guidance issued under CSMS 18-000378 and subsequent updates.
Compliance Documentation
Importers of steel and aluminum must maintain documentation supporting country of origin determination, mill certificates, and HTS classification. CBP audits frequently focus on:
Mill Test Certificates: Original mill certificates from the steel or aluminum producer establishing country of melt and pour (for steel) or country of smelt and cast (for aluminum). This is critical because trans-shipment through a third country does not change the country of origin for Section 232 purposes.
Steel Import Monitoring and Analysis (SIMA) license: Required for most steel imports under the SIMA system administered by the International Trade Administration. Licenses are obtained at trade.gov/steel and must be filed before entry.
Aluminum Import Monitoring (AIM) license: Required for aluminum imports under the AIM system. Licenses are filed through the same Trade.gov portal.
Frequently Asked Questions
Are Section 232 duties refundable?
Generally no. Drawback is unavailable for most Section 232 duties. Refunds are only possible if an exclusion is granted retroactively or if the duties were assessed in error.
Do Section 232 tariffs apply to scrap metal?
Steel scrap (HTS 7204) is generally excluded. Aluminum scrap (HTS 7602) is also excluded from the standard Section 232 aluminum action.
What is the difference between Section 232 and Section 301?
Section 232 applies globally to steel and aluminum based on national security. Section 301 applies only to China based on unfair trade practices. They can stack on the same shipment.
How long do Section 232 tariffs last?
There is no statutory expiration. They remain in force until the President modifies or terminates them by proclamation, typically following a Department of Commerce review.
Can I avoid Section 232 by changing country of origin?
Only through substantial transformation in a non-covered country. Simple processing such as cutting, painting, or repackaging does not change origin. CBP applies a strict substantial transformation test for Section 232 enforcement.
How ExFreight Helps US Importers Manage Section 232 Costs
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Because Section 232 duties stack with Section 301 and IEEPA reciprocal tariffs, accurate landed cost projections matter before booking freight. Get an instant rate quote and full landed cost breakdown at exfreight.com/get-a-quote.
