Section 232 Tariffs Explained: Steel & Aluminum Import Duties (2026 Guide)
Complete guide to Section 232 steel and aluminum tariffs: current 25% rates, covered HTS chapters 72-73 and 76, how duties stack with Section 301 and 122, and actionable strategies for importers to manage costs in 2026.
If you import steel, aluminum, or any product made from these metals, Section 232 tariffs are likely one of the biggest line items on your customs invoices. As of 2026, these tariffs impose a 25% duty on all steel and aluminum imports entering the United States — no exceptions, no exclusions, no country exemptions.
This guide covers everything importers need to know: the legal basis for Section 232, the history of how rates got here, which products are covered, how these tariffs interact with other duties like Section 301 and Section 122, and — most importantly — practical strategies to manage your exposure.
What Is Section 232?
Section 232 refers to Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1862), a Cold War-era statute that gives the President authority to restrict imports if they threaten U.S. national security.
The process works like this:
- The Secretary of Commerce initiates an investigation (self-initiated or at the President's request) into whether a particular category of imports threatens national security.
- The Commerce Department has 270 days to complete its investigation and deliver a report to the President.
- The President then has 90 days to decide whether to take action, and if so, what form that action takes.
- The President can impose tariffs, quotas, or both — with broad discretion over rates and scope.
The national security justification is critical. Unlike Section 301 (which targets unfair trade practices) or antidumping duties (which address below-cost pricing), Section 232 is explicitly about protecting the domestic industrial base needed for national defense. The argument: if foreign steel and aluminum flood the U.S. market and domestic producers shut down, the country loses the ability to manufacture tanks, warships, aircraft, and critical infrastructure.
This authority has been used sparingly throughout history. Before 2018, the most notable Section 232 action was a 1982 investigation into machine tools. The steel and aluminum tariffs imposed by President Trump in 2018 were the first major Section 232 trade restrictions in decades — and they remain the most consequential use of this authority ever.
History: How We Got Here
2017: The Investigations Begin
In April 2017, President Trump directed Commerce Secretary Wilbur Ross to investigate whether steel imports threatened national security. An aluminum investigation followed in April 2017 as well. Both investigations concluded that imports were indeed a national security threat, citing:
- Excess global capacity: Worldwide steel production capacity exceeded demand by roughly 700 million metric tons, largely driven by Chinese government subsidies.
- Declining domestic market share: U.S. steel producers' share of the domestic market had fallen from roughly 80% in the early 2000s to about 70% by 2017.
- Defense readiness: The Department of Defense confirmed that certain specialty steels and aluminum alloys critical to military applications had limited domestic sourcing.
- Employment losses: The U.S. steel workforce had shrunk significantly from its peak, threatening the skilled labor pipeline.
March 2018: Tariffs Take Effect
On March 8, 2018, President Trump signed two proclamations:
- 25% tariff on steel imports (Proclamation 9705)
- 10% tariff on aluminum imports (Proclamation 9704)
The tariffs took effect on March 23, 2018. Initially, several countries received temporary exemptions: Canada, Mexico, the European Union, Australia, Argentina, Brazil, and South Korea. These exemptions were meant to allow time for bilateral negotiations.
2018–2019: Exemptions, Quotas, and Exclusions
The landscape quickly became complicated:
- Canada and Mexico were exempted while USMCA (the successor to NAFTA) was being negotiated. The exemptions were briefly lifted in mid-2018, then restored in May 2019 when USMCA was finalized.
- The EU lost its exemption in June 2018 and retaliated with tariffs on $3.2 billion of U.S. goods including bourbon, motorcycles, and blue jeans.
- South Korea negotiated a quota arrangement (absolute quota on steel) instead of paying the tariff.
- Argentina, Australia, and Brazil also negotiated quota deals.
- An exclusion process allowed individual importers to request exclusions for specific products not available domestically. Over 500,000 exclusion requests were filed — the Commerce Department was overwhelmed.
2021–2024: Biden-Era Modifications
The Biden administration didn't remove Section 232 tariffs but made significant modifications:
- EU deal (October 2021): Replaced the 25% tariff with a tariff-rate quota (TRQ) system allowing 3.3 million metric tons of EU steel duty-free, with 25% on amounts above the quota. A similar arrangement was made for aluminum.
- UK deal (March 2022): Similar TRQ arrangement for British steel and aluminum.
- Japan deal (2024): Quota arrangement for Japanese steel.
- The exclusion process continued but was reformed with stricter criteria and faster review timelines.
February 2025: The Reset
On February 10, 2025, President Trump signed new proclamations that dramatically simplified — and toughened — Section 232:
- Aluminum tariff raised from 10% to 25%, matching the steel rate.
- All country exemptions terminated: Canada, Mexico, EU, UK, Japan, South Korea, Australia, Argentina, Brazil — all now pay the full 25%.
- All tariff-rate quotas eliminated: No more duty-free allotments for any country.
- All product exclusions revoked: The exclusion process was ended entirely. Every previous exclusion expired on March 12, 2025.
- Downstream products added: Tariffs extended to additional derivative products made from steel and aluminum.
These changes took effect on March 12, 2025. The result is the simplest and most aggressive version of Section 232 yet: 25% on everything, from everywhere, with no exceptions.
Current 2026 Rates: What You Pay Today
As of March 2026, the Section 232 tariff structure is straightforward:
| Metal | Rate | Legal Authority | Effective Since |
|---|---|---|---|
| Steel (all forms) | 25% | Proclamation 9705 (as amended) | March 23, 2018 |
| Aluminum (all forms) | 25% | Proclamation 9704 (as amended) | March 12, 2025 (raised from 10%) |
No country exemptions exist. Steel from Canada pays the same 25% as steel from China. Aluminum from Australia pays the same 25% as aluminum from Russia.
No product exclusions are available. The exclusion process that previously allowed importers to request relief for specific products not made domestically has been terminated.
No tariff-rate quotas exist. The quota arrangements negotiated with the EU, UK, Japan, and others have all been revoked.
The duty is calculated on the entered value (transaction value) of the merchandise, the same customs valuation basis used for normal duties.
Use our Duty Calculator to calculate your total landed cost including Section 232 tariffs.
Products Covered: What Counts as "Steel" and "Aluminum"?
Steel Products (HTS Chapters 72–73)
Section 232 covers virtually all steel products classified under:
- Chapter 72: Iron and steel (raw materials, semi-finished products, flat-rolled products, bars, rods, wire, angles, shapes, sections)
- Chapter 73: Articles of iron or steel (tubes, pipes, fittings, structures, containers, wire products, fasteners, springs, stoves, sanitary ware)
Specific HTS headings include:
| HTS Heading | Products |
|---|---|
| 7206–7207 | Iron and non-alloy steel ingots, semi-finished products |
| 7208–7212 | Flat-rolled products (hot-rolled, cold-rolled, clad, plated, coated) |
| 7213–7215 | Bars, rods, wire of iron and non-alloy steel |
| 7216–7217 | Angles, shapes, sections, wire |
| 7218–7229 | Stainless steel and alloy steel (same product forms) |
| 7301–7307 | Sheet piling, railway track, tubes, pipes, fittings |
| 7308 | Structures and parts of structures (bridges, towers, columns, beams) |
| 7309–7311 | Reservoirs, tanks, drums, containers for compressed gas |
| 7312–7319 | Stranded wire, cables, cloth, nails, screws, needles, springs |
| 7320–7326 | Stoves, radiators, sanitary ware, other articles of iron or steel |
Aluminum Products (HTS Chapter 76)
Section 232 covers aluminum products classified under:
- Chapter 76: Aluminum and articles thereof
| HTS Heading | Products |
|---|---|
| 7601 | Unwrought aluminum (ingots, billets) |
| 7602 | Aluminum waste and scrap |
| 7603–7605 | Powders, flakes, bars, rods, profiles, wire |
| 7606–7607 | Plates, sheets, strip, foil |
| 7608–7609 | Tubes, pipes, and fittings |
| 7610 | Structures and parts (bridges, towers, doors, windows) |
| 7611–7616 | Reservoirs, casks, containers, cable, cloth, and other articles |
Derivative Products (Added in 2020 and 2025)
Starting in February 2020 and expanded in February 2025, Section 232 was extended to derivative products — downstream goods made from steel or aluminum that could be used to circumvent the tariffs. These include:
- Steel nails, tacks, staples, and similar fasteners
- Bumper stampings and body stampings for vehicles
- Aluminum wire, cables, and stranded wire not elsewhere specified
- Steel prefabricated buildings
- Additional downstream articles as specified in the Harmonized Tariff Schedule annexes
Not sure if your product is covered? Use our HS Code Lookup Tool to check your product classification.
How Section 232 Stacks with Other Tariffs
One of the most painful realities for importers in 2026 is tariff stacking — multiple tariff programs applying to the same product simultaneously. Section 232 does not replace other tariffs; it adds on top.
Section 232 + Section 301 (China)
If you import steel or aluminum products from China, you may owe both:
- 25% Section 232 tariff (steel or aluminum)
- 25% Section 301 tariff (if the product is on the Section 301 list)
For steel products from China covered by both, the combined tariff rate is 50% on top of any normal MFN duty. Some steel products also carry antidumping or countervailing duties, which can push the effective rate to 100% or more.
Example: Importing cold-rolled steel sheet from China (HTS 7209.16):
- MFN duty: 0%
- Section 232: 25%
- Section 301: 25%
- Potential AD/CVD: 50%+ (varies by manufacturer)
- Total: 100%+
Section 232 + Section 122
Since February 25, 2026, the Section 122 global tariff surcharge of 15% applies to virtually all imports. Steel and aluminum are not exempt.
For non-China steel imports, this means:
- MFN duty: varies (often 0–6%)
- Section 232: 25%
- Section 122: 15%
- Total: 40–46%
For China-origin steel, all three stack:
- MFN duty: varies
- Section 232: 25%
- Section 301: 25%
- Section 122: 15%
- Total: 65%+ before AD/CVD
Key Rule: Section 232 Is Calculated on Entered Value
An important technical detail: Section 232 tariffs are calculated on the entered customs value of the goods, not on a value that includes other tariffs. The tariffs are additive (each calculated on the same base value), not compounding (calculated on each other).
Impact on Specific Industries
Construction
The construction industry has been hit particularly hard. Steel and aluminum are fundamental inputs for:
- Structural beams and columns (I-beams, H-beams, channels)
- Rebar for concrete reinforcement
- Metal roofing, siding, and flashing
- HVAC ductwork (aluminum)
- Electrical conduit (steel and aluminum)
- Windows and curtain walls (aluminum framing)
Industry estimates suggest Section 232 tariffs have added $2,500–$4,000 per single-family home in materials costs. For commercial construction, the impact is even larger — a typical office building uses 20–50 pounds of steel per square foot, translating to hundreds of thousands of dollars in additional tariff costs.
Automotive
The auto industry uses approximately 2,000 pounds of steel and 400 pounds of aluminum per vehicle. At 25% tariffs on both metals, that translates to roughly $500–$900 in additional materials costs per vehicle — though the actual impact varies based on how much metal is sourced domestically versus imported.
The 2025 elimination of the Canada and Mexico exemptions was particularly disruptive for automakers with integrated North American supply chains. A steel coil might cross the U.S.-Canada border multiple times during manufacturing, potentially triggering Section 232 duties at each crossing (though drawback provisions can provide partial relief).
Manufacturing and Industrial Equipment
Manufacturers of machinery, appliances, tools, and industrial equipment face cost increases on both their raw material inputs and finished components:
- Fastener manufacturers: Steel wire rod (the primary input) carries the full 25% tariff.
- Can makers: Aluminum sheet for beverage cans saw immediate cost increases when the aluminum tariff rose to 25%.
- Appliance makers: Washing machines, refrigerators, and HVAC units use significant amounts of both steel and aluminum.
Agriculture and Food Processing
While not obvious at first glance, agriculture is affected through:
- Steel grain bins and storage silos
- Aluminum cans for food and beverage packaging
- Steel fencing and gates for livestock operations
- Equipment and machinery containing steel and aluminum components
The Exclusion Process: What Happened and Where It Stands
How Exclusions Worked (2018–2025)
From 2018 through early 2025, importers could apply for product exclusions through the Commerce Department's Bureau of Industry and Security (BIS). The process worked as follows:
- An importer filed an exclusion request on the BIS portal, identifying the specific product by HTS code and physical specifications.
- Domestic producers had 30 days to file objections, arguing they could supply a comparable product.
- BIS reviewed the request and objections, then approved or denied the exclusion.
- Approved exclusions were valid for one year and could be renewed.
The system was deeply flawed. Over 500,000 requests were filed, creating a massive backlog. Processing times stretched from the intended 90 days to over a year in many cases. The Government Accountability Office (GAO) criticized the process for inconsistency, lack of transparency, and vulnerability to gaming by domestic producers filing blanket objections.
Current Status: No Exclusions Available
As of March 12, 2025, all product exclusions have been revoked and no new exclusions are being accepted. The February 2025 proclamation ended the exclusion process entirely.
This means there is currently no administrative mechanism for an importer to obtain relief from Section 232 tariffs for a specific product, even if that product is genuinely unavailable from domestic sources. The only potential paths are:
- Congressional action: Legislation could create new exemptions, but none is currently advancing.
- Court challenge: Several lawsuits have challenged the constitutionality of Section 232, but courts have generally upheld the President's authority.
- Future presidential action: A future president could modify or revoke the tariffs.
Country-Specific Situations
While no country currently has an exemption, the political dynamics vary:
| Country/Region | Status | Notes |
|---|---|---|
| Canada | Full 25% tariff | Exempted 2019–2025 under USMCA; retaliatory tariffs on U.S. goods in effect |
| Mexico | Full 25% tariff | Exempted 2019–2025 under USMCA; retaliatory tariffs in effect |
| EU | Full 25% tariff | TRQ quota deal (2021–2025) revoked; EU counter-tariffs in effect |
| UK | Full 25% tariff | TRQ deal revoked; UK retaliatory tariffs in effect |
| Japan | Full 25% tariff | Quota deal revoked; Japan considering retaliatory measures |
| South Korea | Full 25% tariff | Quota deal revoked |
| Australia | Full 25% tariff | Was fully exempt 2018–2025; now subject to tariff |
| China | Full 25% (+ Section 301 + AD/CVD) | Effective total rate often exceeds 100% |
Strategies to Manage Section 232 Exposure
With no exclusions available and no country exemptions, importers need to focus on practical strategies to manage costs:
1. Domestic Sourcing
The most direct way to avoid Section 232 tariffs is to buy American. U.S. steel and aluminum production has increased since 2018, and domestic capacity utilization has improved. However, domestic prices often incorporate a "tariff premium" — domestic producers price just below the tariff-inclusive import price, so savings may be less than the full 25%.
2. Product Reclassification Review
Some products exist in a gray area between covered and non-covered HTS codes. A thorough classification review by a licensed customs broker or trade attorney may identify opportunities to correctly classify products under headings that are not subject to Section 232. This must be done carefully — misclassification carries severe penalties.
3. Foreign Trade Zones (FTZs)
Foreign Trade Zones can provide limited relief. If you import steel or aluminum and manufacture it into a finished product within an FTZ, you may be able to elect the finished product duty rate instead of paying the Section 232 tariff on the raw material. This only helps when the finished product's normal duty rate is lower than 25% — and the finished product itself must not be subject to Section 232.
4. Duty Drawback
If you import steel or aluminum and then export finished products, you may be eligible for duty drawback — a refund of up to 99% of duties paid on imported materials that are subsequently exported. This is particularly valuable for manufacturers who serve both domestic and international markets.
5. Tariff Engineering
Tariff engineering involves modifying a product's design, composition, or country of origin to legitimately change its tariff classification. For example:
- Sourcing components separately rather than assembled products
- Modifying alloy compositions to shift HTS classification
- Performing substantial transformation in a third country (though rules of origin are strictly enforced)
This strategy requires careful legal analysis and must be done transparently — evasion through transshipment or false country-of-origin declarations carries criminal penalties.
6. Supply Chain Diversification
While no country is exempt from Section 232, diversifying your supplier base across multiple countries reduces geopolitical risk and may provide leverage in price negotiations. If your steel currently comes entirely from one country, having qualified alternative suppliers gives you options if trade conditions change.
7. Contract Renegotiation
Review your customer contracts to ensure tariff costs can be passed through. Many importers were caught in 2018 with fixed-price contracts that didn't account for Section 232 duties. Include tariff escalation clauses in all new agreements, and renegotiate existing contracts where possible.
8. Inventory Management
Strategic inventory positioning — building stock ahead of anticipated tariff increases or changes — can provide a buffer. This carries carrying costs and inventory risk, but can be valuable when tariff changes are telegraphed in advance (as they were in February 2025).
Calculate your total landed cost with all applicable tariffs using our Duty Calculator.
Legal Challenges to Section 232
Section 232 has faced multiple legal challenges, but courts have generally upheld the President's authority:
- American Institute for International Steel v. United States (2019): The Court of International Trade upheld Section 232, ruling it does not violate the non-delegation doctrine. The Federal Circuit affirmed in 2020.
- Transpacific Steel v. United States (2020): Challenged the process for granting and denying exclusions. The court found the exclusion process was not reviewable.
- Various WTO disputes: Multiple countries have challenged U.S. Section 232 tariffs at the World Trade Organization. The U.S. has invoked the WTO's national security exception (Article XXI of GATT). WTO panels have issued mixed rulings, but the U.S. has declined to comply with adverse findings.
The Supreme Court has not directly ruled on Section 232's constitutionality. While it struck down IEEPA tariffs in February 2026, that ruling was based on IEEPA's narrower scope — it did not address Section 232, which operates under separate and arguably stronger legal authority.
Section 232 vs. Other Tariff Authorities: A Comparison
Understanding how Section 232 fits into the broader tariff landscape helps importers plan effectively:
| Feature | Section 232 | Section 301 | Section 122 | AD/CVD |
|---|---|---|---|---|
| Legal authority | Trade Expansion Act 1962 | Trade Act 1974 | Trade Act 1974 | Tariff Act 1930 |
| Justification | National security | Unfair trade practices | Balance of payments emergency | Below-cost dumping / subsidies |
| Scope | Specific products (steel, aluminum) | Country-specific (mainly China) | All imports from all countries | Product + country specific |
| Current rate | 25% | 7.5–100% | 15% | Varies (0–500%+) |
| Duration | Indefinite | Indefinite (subject to review) | Max 150 days + 150-day extension | Subject to annual review |
| Exclusion process | Ended | Limited exclusions available | None | None (but scope defined by investigation) |
| Court status | Upheld | Upheld | Challenged, pending | Well-established |
What to Watch in 2026 and Beyond
Several developments could affect Section 232 tariffs going forward:
-
Retaliation escalation: Canada, the EU, and other allies have imposed or expanded retaliatory tariffs. Further escalation could prompt negotiations and potential modifications.
-
Congressional action: Several bills have been introduced to reform Section 232, including proposals to require Congressional approval for tariffs lasting more than two years. None have advanced yet, but bipartisan interest exists.
-
Domestic capacity constraints: As U.S. manufacturing grows, demand for domestically produced steel and aluminum may outstrip supply, creating pressure for tariff relief on specific products.
-
Downstream industry lobbying: Industries that consume steel and aluminum (construction, auto, appliances) continue to push for relief, arguing the tariffs cost more manufacturing jobs downstream than they save upstream.
-
Trade deal negotiations: Any future trade agreements with the EU, UK, or other partners could include provisions to address Section 232 tariffs.
Key Takeaways for Importers
- Section 232 tariffs are 25% on ALL steel and aluminum imports, regardless of country of origin.
- No exclusions, exemptions, or quotas are currently available.
- These tariffs stack on top of Section 301, Section 122, AD/CVD, and normal MFN duties.
- The legal authority is well-established — courts have upheld Section 232, and the Supreme Court's IEEPA ruling does not affect it.
- Practical strategies include domestic sourcing, FTZ utilization, duty drawback, tariff engineering, and contract renegotiation.
- Use our Duty Calculator and HS Code Lookup tools to understand your specific exposure.
Section 232 tariffs have been in place for eight years now and show no signs of going away. The February 2025 changes made them simpler but more aggressive — 25% on everything, from everywhere. Importers who haven't already adapted their supply chains and pricing strategies need to do so now. These tariffs are a permanent feature of the U.S. trade landscape for the foreseeable future.