⚠️ Rate Increase — March 2025
Aluminum tariffs were raised from 10% to 25% effective March 12, 2025, matching steel. Both metals now carry a flat 25% Section 232 duty on top of any other applicable tariffs.
Section 232 tariffs apply to steel and aluminum imports based on a national security justification under the Trade Expansion Act of 1962. First imposed in 2018, then expanded and modified through 2025, these tariffs are now a permanent fixture of US trade policy — and a major cost for manufacturers, fabricators, and industrial importers.
This guide covers the current rates, which countries are exempt (or not), which products fall under Section 232, how the tariff stacks on top of other duties, and how to calculate your actual duty bill.
As of 2026, both steel and aluminum carry a 25% ad valorem tariff under Section 232. This is applied to the customs value of the imported goods, calculated at the port of entry.
| Product | Section 232 Rate | Effective Since | |
|---|---|---|---|
| Steel (HTS Chapter 72–73) | March 23, 2018 | 25% | |
| Aluminum (HTS Chapter 76) | March 12, 2025 (raised from 10%) | 25% | |
| Steel derivatives (nails, wire, etc.) | February 8, 2020 | 25% | |
| Aluminum derivatives (foil, cables, etc.) | February 8, 2020 | 10%* |
* Aluminum derivatives remain at 10% unless specifically modified. Check the USTR Federal Register notice for your HTS code.
These rates stack on top of the standard MFN (Most Favored Nation) duty rate for your HTS code. For Chinese steel, they also stack on top of Section 301 tariffs — bringing the total duty load to 50–75%+ for some products.
Section 232 uses HTS codes to define scope. The key chapters to check:
Not every HTS code in these chapters is covered. Proclamation 9705 (steel) and Proclamation 9704 (aluminum) list the specific 10-digit HTS codes in annexes. If your product isn't on the list, Section 232 does not apply — even if it's made of steel or aluminum.
ℹ️ Downstream Products Matter
Steel and aluminum "derivatives" — like nails, staples, wire mesh, foil containers, and cable — were added in 2020. A product doesn't need to be raw metal to carry a 232 tariff. Always verify using the HTSUS before assuming you're exempt.
Not all countries pay Section 232 tariffs. The US has negotiated tariff-rate quotas (TRQs) and full exemptions with several trading partners. Here's the current status:
| Country | Steel 232 | Aluminum 232 | Notes | |
|---|---|---|---|---|
| Canada | Exempt (TRQ) | Exempt (TRQ) | Subject to volume caps under USMCA framework | |
| Mexico | Exempt (TRQ) | Exempt (TRQ) | Subject to volume caps | |
| EU (27 countries) | Exempt (TRQ) | Exempt (TRQ) | Agreement reached Oct 2021, still in effect | |
| UK | Exempt (TRQ) | Exempt (TRQ) | Separate from EU deal post-Brexit | |
| Japan | Exempt (TRQ) | Exempt (TRQ) | Deal struck April 2022 | |
| China | 25% + 301 | 25% | No exemption; 301 tariffs also apply to steel | |
| South Korea | Exempt (TRQ) | 25% | Steel TRQ, no aluminum exemption | |
| Brazil | Exempt (TRQ) | 25% | Steel TRQ only | |
| Argentina | Exempt (TRQ) | Exempt (TRQ) | Both metals | |
| All others | 25% | 25% | Full rate applies |
TRQ (Tariff-Rate Quota) means imports are exempt up to a specific annual volume. Once the quota fills, the 25% rate kicks in for the remainder of the year. CBP publishes quota utilization weekly — if you're importing late in the year from an exempt country, check utilization before assuming exemption.
The calculation is straightforward. Section 232 is an ad valorem tariff, meaning it's a percentage of the customs value (transaction value or first-sale value as declared to CBP).
The same coil from Canada under USMCA with an available quota slot: $0 in tariffs. This is why supply chain origin matters enormously for metal imports in 2026.
Use the USITC HTS search tool to find your 10-digit code. Confirm it appears in Proclamation 9705 (steel) or 9704 (aluminum) annexes. If it's not listed, Section 232 doesn't apply to your product.
Country of origin for tariff purposes is where the product was substantially transformed — not where it shipped from. If your steel was melted and rolled in China, it's Chinese origin regardless of which port it transited.
If your supplier is in Canada, EU, Japan, or another TRQ country, check CBP's Steel and Aluminum TRQ portal before your shipment arrives. A full quota means the 25% rate applies even for normally-exempt sources.
Section 232 is additive. Your total duty = MFN rate + 232 rate + any applicable antidumping/countervailing duties (ADD/CVD) or Section 301 duties for Chinese goods. All rates apply simultaneously.
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Calculate Now →The challenge with steel and aluminum imports is that Section 232 rarely operates alone. Most products face at least two tariff layers, and Chinese-origin metals can face four:
For Chinese steel, the combined effective tariff rate routinely exceeds 100%. This is why the US has largely stopped importing steel from China — it's economically unviable for most products. The remaining Chinese steel imports tend to be highly specialized grades with no domestic substitute and specific product exclusions approved by the USTR.
For sourcing strategy, see the guide on landed cost comparison: China vs. Vietnam vs. Mexico. Vietnam-origin steel pays 25% Section 232 but no Section 301, which often makes it competitive vs. Canadian or EU sources once shipping costs are factored in.
Any US company can apply for a product exclusion from Section 232 tariffs if:
Exclusion requests are filed with the Bureau of Industry and Security (BIS). The process takes 90–120 days. Approved exclusions are retroactive to the date of application filing. Exclusions are product-specific (by HTS code and product description) and importer-specific — a competitor's exclusion doesn't help you unless BIS granted a "general approved" exclusion applicable to all importers.
ℹ️ Exclusion Tip
Check the BIS exclusion database before applying. If a broadly worded exclusion covering your product already exists as a general approved exclusion, you can claim it on entry without filing your own request. This can save months of processing time.
The stated goal of Section 232 is to protect domestic steel and aluminum production by making imports more expensive. The data since 2018 is mixed:
US steel capacity utilization rose from ~73% in 2017 to ~80% in 2019, but the tariffs also significantly raised input costs for downstream US manufacturers — automakers, appliance makers, construction firms, and machinery producers. The Peterson Institute estimated the tariffs cost US consumers and businesses roughly $900,000 per steel job saved annually.
For importers in 2026, the practical reality is: if you're buying steel or aluminum from a non-exempt country, budget 25% on top of all other duty costs. This is particularly relevant for e-commerce sellers sourcing metal products or accessories with significant aluminum or steel components from China, Vietnam, Taiwan, or India.
For more on total import costs, including MPF, HMF, and brokerage fees, see hidden import costs beyond tariffs.
Both Section 232 and Section 301 add tariffs on top of MFN rates, but they work differently:
| Characteristic | Section 232 | Section 301 | |
|---|---|---|---|
| Legal basis | Trade Expansion Act 1962 | Trade Act 1974 | |
| Rationale | National security | Unfair trade practices | |
| Scope | Steel + aluminum (all countries) | Most goods from China | |
| Current rate | 25% | 25–145% | |
| Country-specific? | No (but TRQ exemptions exist) | China-only | |
| Exclusion process? | Yes (BIS) | Yes (USTR) |
For Chinese steel imports, both apply simultaneously. For steel from any non-exempt non-China country, only Section 232 applies. This makes sourcing from Vietnam, India, or Turkey a potential strategy — you pay 25% Section 232, but escape the Section 301 rates entirely. Read more in the tariff rates by country guide.
Several developments could affect Section 232 costs in the second half of 2026:
It depends on the HTS code. Raw steel (Chapter 72) and steel articles (Chapter 73) are covered if the specific HTS code appears in the Proclamation 9705 annex. Many finished manufactured goods that happen to contain steel — like machinery, vehicles, or appliances — are not covered. The tariff targets the steel and aluminum inputs, not finished goods made with them. Always check whether your 10-digit HTS code is in the covered list.
No. Country of origin is where the product was substantially transformed — not the last country it shipped from. Steel melted and rolled in China that transits Canada is still Chinese-origin steel. CBP applies strict origin rules, and misrepresenting origin to avoid tariffs is customs fraud with serious civil and criminal penalties.
Section 232, like all US import duties, is calculated on the customs value — typically the transaction value, which is the price paid or payable for the goods when sold for export to the US. This is generally the FOB price. Freight, insurance, and other costs incurred after loading are not included in customs value unless specifically required by your Incoterms arrangement. See the customs value guide for details.
Yes. If BIS approves your exclusion, the decision is retroactive to your application filing date. You can file a protest with CBP to recover duties paid on entries made after your exclusion application was submitted. Refunds are processed after the exclusion is granted — the process takes months, so file early.
Canada and Mexico have TRQ exemptions, not full exemptions. Steel and aluminum from both countries are exempt up to annual volume caps. Once a quota fills, the 25% rate applies to remaining imports that year. Check CBP's TRQ portal regularly, especially in Q3–Q4 when quotas can be near capacity. Argentina has full exemptions for both metals without a volume cap.