Few trade measures have had as much impact on U.S. imports as Section 232 tariffs.
What began as a targeted tariff on steel and aluminum has significantly changed in 2025, with increased rates, expanded coverage, inclusion of derivatives, and new duty calculations.
For U.S. importers, navigating this system is now a critical compliance challenge.
To help you navigate this complexity, this article covers what Section 232 tariffs are, which products fall within their scope, how to report derivative content, and the considerations to keep in mind.
First introduced in 2018, Section 232 tariffs give the U.S. government authority to impose duties on imports that are considered to threaten national security.
These tariffs are administered under the Trade Expansion Act of 1962 and remain in place until modified by a presidential proclamation, following an investigation by the U.S. Department of Commerce.
Section 232 initially covered only steel and aluminum, but its scope has expanded over time.
In 2025, the program was updated to include new industries, derivative products, and revised tariff levels.
Furthermore, the way duties are assessed was significantly updated in 2025.
Duties are now calculated either on the full value of the goods or, for derivatives, only on the value of the Section 232 material they contain.
Section 232 tariffs apply to a defined list of products. These are:
As of 2025, steel imports are subject to a 50% ad valorem duty for most countries, while the United Kingdom faces a reduced rate of 25%.
The scope covers both raw steel (flat-rolled, long products, pipe, tubular goods) and certain derivative items, such as nails, staples, wire, and automotive components.
Aluminum imports now carry a 50% ad valorem duty, with the UK capped at 25%.
Covered products include unwrought aluminum, bars, rods, foil, wire, alloys, and certain derivative goods such as finished parts and conductors.
A 50% ad valorem duty applies to imports of semi-finished copper, such as pipes, wires, rods, sheets, and tubes.
The same duty rate applies to derivative copper products, such as cables, pipe fittings, connectors, and electrical components.
The Section 232 tariffs on vehicles now cover two distinct categories:
Goods subject to these vehicle tariffs (both passenger and heavy-duty) are not subject to additional sectoral 232 tariffs on steel, aluminum, copper, automobiles and automobile parts, and lumber.
They are also not subject to reciprocal tariffs or the tariffs imposed on Canada, Mexico, Brazil, or India.
The Secretary of Commerce shall develop a process for adding additional auto parts to the scope of the established tariffs, and domestic producers may request the inclusion of additional parts.
Section 232 also applies to timber, lumber, and derivative wood products. The rates are:
The UK has a reduced cap of 10% on these products, while the EU and Japan have a 15% cap.
For derivative products, the duty is assessed only on the value of their Section 232 content. When the content value is unknown or equals the total value, the full value must be used.
Steel and aluminum imports from Russia are subject to a 200% tariff.
The U.S. Department of Commerce is actively conducting Section 232 investigations into several other industries.
Tariffs may be imposed on these imports if they are found to pose a threat to national security.
The list of products under active investigation includes:
For derivative products, the tariff applies only to the value of the Section 232 content.
However, for Russian steel and aluminum, the 200% duty is assessed on the entire value of the imported good.
Importers must use a "two-line" entry method to report the customs value for their goods:
If the content value is unknown, the tariff must be paid on the entire value of the product.
As of 2025, importers can no longer file new exclusion requests for steel and aluminum, but existing exclusions remain valid until they expire or their approved volumes are used up.
In place of exclusions, the U.S. Department of Commerce has introduced an inclusions process.
Rather than removing products from tariff coverage, this process allows stakeholders to request that new derivative products be added to the scope of Section 232.
This process runs three times a year (January, May, and September) and includes a public comment period, after which decisions are issued within 60 days.
To avoid unexpected duties or compliance issues, we recommend keeping the following points in mind:
Correct tariff classification is the foundation of Section 232 compliance. Duties are assessed through specific subheadings in Chapter 99, and classification errors can result in incorrect duty rates or penalties.
Ensuring your goods map to the correct subheadings is a critical first step towards compliance.
Many finished goods that use Section 232 products are now included as derivatives.
A careful review of finished goods is essential, as these items are easily overlooked and may represent a compliance risk.
Tariff levels are not always similar for all countries of origin. Some trading partners are subject to reduced rates or are covered by negotiated caps.
Factoring these varying duty levels by origin into your sourcing strategy is key to ensuring you’re not paying more than you should.
Section 232 tariffs introduce an added layer of complexity to U.S. imports. With constantly updated rates and expanded coverage of derivative products, staying compliant requires close attention to detail. That’s where we come in.
At Cole International, we offer customs brokerage and trade consulting services to help U.S. importers navigate changing regulations with confidence and ensure compliance.
Our team works with importers every day to:
We don’t believe in guesswork. We get it right the first time.
If your imported goods may be subject to Section 232 tariffs, reach out to one of our trade professionals to determine their correct classification and ensure compliance.