25% on steel and 10% on aluminum since 2018. Section 232 tariffs apply to all countries and now stack with the Section 122 universal surcharge.
Section 232 tariffs have been in effect since March 2018, making them the longest-running layer of the current tariff structure. For steel importers, the tariff stack can be severe: 25% Section 232, plus the 10% Section 122 surcharge, plus any applicable MFN duty rate, plus 25% Section 301 for Chinese steel. This can push total effective tariff rates on Chinese steel above 60%. Even steel from allied nations faces a minimum 35% combined rate. Understanding exactly which tariff layers apply to your specific products and origins is essential for accurate cost planning.
The Section 232 product exclusion process allows importers to request tariff relief for specific steel or aluminum products not available domestically. The process requires detailed technical specifications and evidence that domestic producers cannot meet your requirements. Approval rates have declined over time as domestic production has expanded. Alternative strategies include sourcing from countries with quota agreements, switching to domestic suppliers where economically viable, or redesigning products to use different materials where possible.
Section 232 tariffs affect far more than steel mills and aluminum smelters. Any manufacturer using steel or aluminum as an input, from automotive to construction to consumer products, faces higher material costs. An estimated 900,000 more jobs exist in steel-using industries than in steel production itself. MarginHub helps downstream manufacturers quantify the Section 232 cost impact on their products and identify the most cost-effective sourcing strategies for steel and aluminum inputs.
Section 232 of the Trade Expansion Act of 1962 allows the President to impose tariffs on imports that threaten national security. In March 2018, 25% tariffs were imposed on steel imports and 10% on aluminum imports from most countries. These tariffs remain in effect in 2026 and apply on top of other tariff layers.
Steel imports face a 25% tariff and aluminum imports face a 10% tariff under Section 232. With the Section 122 universal surcharge, effective rates are 35% for steel and 20% for aluminum before any MFN duties or Section 301 tariffs for Chinese products.
Most country-specific exemptions have been replaced with tariff-rate quotas. Australia has a full exemption. Some countries including the EU, UK, and Japan operate under quota systems where a set volume enters at reduced or zero Section 232 rates, with full tariffs applying above the quota. Mexico and Canada are subject to monitoring provisions under USMCA.
Exclusion requests are filed through the Bureau of Industry and Security portal. You must demonstrate that the specific steel or aluminum product you need is not produced domestically in sufficient quantity or quality. The review process typically takes 60-90 days, and approved exclusions are valid for one year with the possibility of renewal.
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