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.

Steel products (covered by heading 9903.80.02) imported from Turkey will be subject to a 50% tariff rate.

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.

Downstream and Derivative Products

In an effort to prevent tariff evasion, the new order expands to include certain downstream products, including:

• fabricated structural steel;
• prestressed concrete strand; and
• others.

Previously, some countries avoided tariffs by exporting processed steel products instead of raw steel, which allowed foreign companies to bypass U.S. protections.

Derivative steel products outside of the U.S. from steel "melted and poured" in the U.S. are not subject to the 25% tariff.

Potential Retaliation

The European Union (EU) has expressed strong opposition to the newly expanded steel and aluminum tariffs calling them “unjustified” and warning that they “will not go unanswered”.” While EU officials have not stated what retaliation would look like, they expressed they are ready to enact countermeasures against the United States.

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