Section 232 Steel & Aluminum Tariffs in 2026: Rates, Exemptions, and Derivative Products

Section 232 tariffs on steel and aluminum have been a cornerstone of US trade policy since their imposition in March 2018 under the authority of the Trade Expansion Act of 1962. Originally set at 25% for steel and 10% for aluminum, these tariffs were justified on national security grounds, arguing that dependence on foreign metals posed a threat to US defense and critical infrastructure. In 2025, the aluminum tariff was raised to 25%, matching the steel rate. As of 2026, these tariffs remain fully in effect, and their scope has expanded to cover an increasing number of derivative products made from steel and aluminum.

Current Section 232 Rates and Coverage

The current Section 232 tariff rates are straightforward in principle but complex in application. Steel articles classified under specific HTS headings face a 25% ad valorem tariff. Aluminum articles similarly face a 25% ad valorem tariff. These rates apply to imports from all countries unless a specific exemption, exclusion, or alternative arrangement is in place. The tariffs apply broadly to a wide range of steel and aluminum products, from raw materials like slabs and ingots to semi-finished products like sheet, plate, and coil, as well as finished articles like pipes, tubes, and structural shapes.

Derivative Steel Products

In February 2020, the administration expanded Section 232 coverage to include certain derivative steel products, including nails, staples, steel bumpers and stampings, and other downstream articles. This expansion was designed to close a loophole where foreign producers could avoid tariffs by performing minimal processing before export. The derivative products are identified by specific HTS codes listed in presidential proclamations. Importers must carefully classify their products to determine whether they fall under the original steel tariff, the derivative expansion, or neither.

Derivative Aluminum Products

Similar to steel, derivative aluminum products were added to Section 232 coverage. These include aluminum foil, aluminum cables and wire, and various aluminum fabricated articles. The expansion reflects concern that tariffs on primary aluminum were being circumvented through downstream processing in third countries.

• Steel: 25% tariff on all covered HTS codes, including flat-rolled products (HTS 7208-7212), long products (HTS 7213-7217, 7221-7229), pipe and tube (HTS 7304-7306), and stainless steel (HTS 7218-7220).
• Aluminum: 25% tariff on primary aluminum (HTS 7601), aluminum plates, sheets, and strip (HTS 7606-7607), aluminum foil (HTS 7607), and other wrought aluminum products.
• Derivative steel: 25% tariff on nails (HTS 7317), bumpers and stampings (various HTS codes), and other specified downstream products.
• Derivative aluminum: 25% tariff on aluminum wire (HTS 7605), foil (HTS 7607), tubes and pipes (HTS 7608), and other specified articles.

Country Exemptions and Alternative Arrangements

The Section 232 tariff landscape is further complicated by country-specific exemptions and alternative arrangements. When first imposed, several countries received temporary exemptions. Over time, these have been replaced by a mix of tariff-rate quotas (TRQs) and full tariff application. As of 2026, the situation varies by country. Canada and Mexico, while initially exempted under USMCA/NAFTA considerations, have been subject to varying treatment depending on administration policy. The European Union, Japan, and the United Kingdom have negotiated alternative arrangements involving tariff-rate quotas that allow a specified volume of steel and aluminum to enter duty-free, with the 25% tariff applying to volumes above the quota. Australia has maintained a full exemption based on its bilateral security relationship. All other countries, including major steel-producing nations like South Korea, Brazil, and India, face the full 25% tariff without quota relief.

The Product Exclusion Process

The Bureau of Industry and Security (BIS) within the Department of Commerce administers a product exclusion process for Section 232 tariffs. Importers can request exclusions for specific products that are not produced in sufficient quantity or quality in the United States. The process requires detailed documentation including product specifications, US sourcing attempts, and volume requirements. Exclusion requests are published in the Federal Register for a 30-day objection period, during which domestic producers can argue that they can supply the product. Approved exclusions are typically valid for one year and may be renewed.

1. Submit an exclusion request through the Section 232 Exclusions Portal on the BIS website, providing detailed product specifications including dimensions, chemistry, mechanical properties, and annual volume needed.
2. BIS reviews the request and publishes it for public comment. Domestic producers have 30 days to file objections claiming they can supply the product.
3. BIS evaluates the request based on domestic availability, quality equivalence, and delivery capability. Processing times have averaged 3-6 months.
4. If approved, the exclusion allows duty-free importation of the specified product up to the approved volume for the exclusion period.
5. Approved exclusions can be retroactively applied to entries made after the request filing date, allowing importers to recover duties paid during the review period.

Compliance Obligations for Steel and Aluminum Importers

Importers of steel and aluminum products face specific compliance requirements beyond normal customs entry procedures. All entries of steel products must include a steel import license issued through the Automatic Steel Import Monitoring and Analysis (ASIMA) system. Similarly, aluminum imports require an aluminum import monitor license. These licenses must be obtained prior to importation and included with the entry filing. The licenses are issued automatically but serve as a data collection mechanism for the government to monitor import volumes and pricing. Failure to obtain the required license can result in delays, penalties, and increased scrutiny from CBP.

Impact on Downstream Industries and Pricing

The ripple effects of Section 232 tariffs extend far beyond primary metal importers. Manufacturers of automobiles, appliances, construction materials, packaging, and countless other products that use steel or aluminum as inputs have faced increased costs. Some have absorbed the costs, while others have passed them to consumers. The expansion to derivative products has further increased the scope of affected industries. For importers, accurate classification and duty calculation are essential for pricing, procurement, and sourcing decisions. Understanding whether your specific product is covered, and at what rate, directly affects your margins and competitive position.

Managing Section 232 exposure starts with accurate product classification. Whether you import raw steel coil, aluminum extrusions, or finished products containing steel or aluminum components, you need to know exactly where your product falls in the tariff schedule. TariffPro provides instant, AI-powered HTS classification that identifies Section 232 exposure and calculates your total duty obligation. Sign up for a free account to start analyzing your steel and aluminum imports today.