Section 232 Steel and Aluminum Tariffs

Tariff Rate, Effective Date

Under the new order, all imports of steel and aluminum will be subject to a 25% tariff rate, effective March 12, 2025. This represents an increase from the previous 10% tariff on aluminum.

Certain steel and aluminum derivative products are included in the order and subject to the tariff. See "Derivative and Downstream Products" below.

Countries Subject to the Tariff

There are no country exemptions under the new policy. All previous Section 232 steel and aluminum country exemptions and tariff-rate quota deals with Canada, Mexico, the European Union, Japan, South Korea, Australia and others have been eliminated. President Trump is considering exempting Australia from these tariffs due to Australia’s trade surplus with the United States.

According to the proclamation, the removal of country exemptions is due to significant increases in imports from previously exempted countries, which have contributed to oversupply and pricing pressures, negatively impacting U.S. domestic producers.

The largest suppliers of steel to the U.S. by quantity were:

• Canada
• Brazil
• Mexico

The largest suppliers of aluminum to the U.S. by quantity were:

• Canada
• United Arab Emirates (UAE)
• China

See additional data details below.

Exclusions

The proclamation terminates the product exclusion process which previously allowed U.S. companies to request exclusions for products not readily available from domestic sources. Additionally, previously approved product-specific tariff exclusions are also eliminated.

Derivative and Downstream Products

Tariffs of 25% to be imposed on additional steel derivatives and aluminum derivatives. The additional duty shall only apply to the declared value of the aluminum or stel content of the derivative article. (See below)

Derivative steel products processed in another country from steel articles that were "melted and poured" in the U.S. and derivative aluminum products processed in another country from aluminum articles that were "smelted and cast" in the U.S. are not subject to the 25% tariff.

Refer to the Federal Register notices for the full list of derivative products.

Value of the Steel and Aluminum Content Outside of Chapters 73 and 76

The value of the steel/aluminum content should be determined in accordance with the principles of the Customs Valuation Agreement, as implemented in 19 U.S.C. 1401a.

Thus, the value of the steel/aluminum content is the total price paid or payable for that content, which is the total payment (direct or indirect, and exclusive of any costs, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise from the country of exportation to the country of importation) made/to be made for the steel/aluminum content by the buyer to, or for the benefit of, the seller of the steel/aluminum content.

Normally, this would be based on the invoice paid by the buyer of the steel/aluminum content to, or for the benefit of the seller of the steel/aluminum content.

Steel Import Data

U.S. Imports of Steel Mill Products (Quantity in Metric Tons)

U.S. Imports of Steel Mill Products (Value in U.S. Dollars)

Source: U.S. Department of Commerce, U.S. Steel Import Monitor

Aluminum Import Data

U.S. Imports of Aluminum Products (Quantity in Metric Tons)

U.S. Imports of Aluminum Products (Value in U.S. Dollars)

Source: U.S. Department of Commerce, U.S. Aluminum Import Monitor