Section 232 Tariffs on Steel and Aluminum: Current Rates and Impact

What Is Section 232?

Section 232 of the Trade Expansion Act of 1962 gives the President authority to impose tariffs on imported goods that threaten US national security. In 2018, the Trump administration invoked Section 232 to impose tariffs on steel and aluminum imports, citing the decline of domestic steel and aluminum production as a national security threat.

Unlike Section 301 tariffs, which were specifically targeted at China as a response to unfair trade practices, Section 232 tariffs apply globally — to steel and aluminum from almost every country. Canada, Mexico, the EU, Japan, South Korea, and many others were initially covered (though some have since negotiated exemptions or quota arrangements).

Current Section 232 Rates

Country Exemptions and Quota Arrangements

Not every country is subject to the full Section 232 rates. Some countries have negotiated alternatives:

• Canada and Mexico: Exempted from 232 (tariff-free under USMCA framework for qualifying goods). Note: this has been subject to periodic renegotiation.
• EU, UK, Japan: Negotiated tariff rate quotas (TRQs) that allow certain volumes in duty-free before the 25%/10% rate kicks in.
• South Korea, Brazil, Argentina: Quota arrangements for steel.
• Australia: Full exemption from Section 232.
• China, Russia, and most other countries: Subject to the full 25%/10% rate.

The exemption and quota landscape has been dynamic and continues to evolve. Always verify the current country-specific treatment before importing steel or aluminum.

How Section 232 Differs from Section 301

Which HTS Codes Are Covered

The Section 232 tariff on steel covers a wide range of HTS codes, primarily:

• Chapter 72 — Iron and steel (flat-rolled products, bars, rods, wire, tubes, pipes)
• Chapter 73 — Articles of iron or steel (when containing steel that would be subject to 232)
• Specific headings in other chapters for steel derivatives added in 2020

The aluminum tariff covers:

• Chapter 76 — Aluminum and articles thereof
• Specific derivative products added in 2020

The exact list of covered HTS codes is published in the relevant Presidential Proclamations and is maintained in Chapter 99 of the HTS. Use our HTS lookup tool to check your specific code.

Downstream Products: The 2020 Derivative Expansion

In 2020, the Section 232 tariffs were extended to cover “derivative” steel and aluminum articles — products that are manufactured from steel or aluminum and where the steel or aluminum content is the primary component by value or weight.

Examples of derivative products that may be subject to 232:

• Steel nails, screws, and fasteners (certain HTS codes in Chapter 73)
• Aluminum cans and containers
• Certain steel wire products
• Aluminum door and window frames

Whether a downstream product qualifies as a “derivative” subject to 232 depends on its specific HTS code and whether it appears in the Presidential Proclamation covering derivatives. This is a fact-intensive inquiry — work with your customs broker to confirm.

The Section 232 Exclusion Process

Companies can request product exclusions from Section 232 tariffs by demonstrating that the specific steel or aluminum they need is not produced in the US in sufficient quantity, quality, or on time to meet their needs. Exclusion requests are submitted to the US Department of Commerce.

General approved exclusions

Commerce has approved thousands of general exclusions that any importer can use without filing their own request. Check the Commerce Section 232 exclusion portal to see if a general exclusion covers your product before filing a new request.

Company-specific exclusions

If no general exclusion covers your product, you can file a company-specific exclusion request. The process involves describing the product, explaining why US supply is insufficient, and demonstrating that you are the end user. Exclusion requests can take several months to adjudicate.

How Section 232 Interacts with Tariff Engineering

Tariff engineering strategies that work for Section 301 — sourcing shift, product redesign, country of origin change — may also work for Section 232, but with more complexity because 232 applies globally. Moving production from China to Vietnam doesn't eliminate Section 232 exposure if Vietnam's steel is also subject to 232.

One strategy that does work: sourcing steel or aluminum inputs from a Section 232-exempt country (like Canada or Australia) and manufacturing finished goods there. If the finished goods undergo substantial transformation in that country, they may qualify as Canadian or Australian origin and be exempt from 232.

For more on legal strategies to reduce your tariff burden, see our guide to tariff engineering.

Section 232 and the Broader Tariff Picture

For ecommerce importers, Section 232 is most relevant if you sell:

• Metal shelving, racks, or storage products
• Tools and hardware (certain HTS codes)
• Furniture with significant steel or aluminum frames
• Industrial equipment or parts
• Building materials or components

For consumer products made primarily of plastic, fabric, or wood, Section 232 typically doesn't apply — but check the specific HTS code to confirm.

For a full picture of your tariff exposure — including Section 232, Section 301, and base MFN duties — see our guide to Section 301 tariffs or run a lookup on your specific HTS code at lgistics.ai/lookup.