Section 232 tariffs are among the most impactful trade measures currently in effect. Unlike country-specific tariffs, Section 232 duties apply to imports from nearly every country in the world. Steel and aluminum rates were doubled from 25% to 50% in June 2025. Then, effective April 6, 2026 (Proclamation issued April 2, 2026), Section 232 was restructured into two tiers: 50% on articles that are wholly steel, aluminum, or copper, and 25% on derivative products that are substantially — but not wholly — made of those metals, with the duty now assessed on the full customs value of the article. If you're importing steel, aluminum, copper, automobiles, or related products, you need to understand which tier applies and how it stacks with other tariffs.
Current Section 232 Rates
As of mid-2026, Section 232 tariffs cover several major product categories, and since the April 6, 2026 restructuring they are tiered. Steel: 50% on articles wholly of steel, 25% on derivative steel products (both on full customs value). Aluminum: 50% on articles wholly of aluminum, 25% on derivatives. Copper: 50% on articles wholly of copper, 25% on derivatives. Automobiles and auto parts are subject to 25%. Semiconductors are 25% under Section 232 authority. Lumber and timber products face 10%, while cabinets are taxed at 25-50%. The UK pays a reduced 25% on steel/aluminum under the Economic Prosperity Deal. Australia is exempt from steel/aluminum Section 232. The key takeaway: a flat 50% applies only to articles that are essentially all metal — downstream/derivative goods are at the 25% tier.
How Section 232 Stacks with Other Tariffs
Section 232's interaction with other tariffs is widely misunderstood. The key rule: goods subject to Section 232 are excluded from the 10% Section 122 surcharge to the extent the 232 duty applies — Section 122 reaches only any non-metal content. So an article wholly of steel pays its 50% Section 232 rate, NOT 60%. What DOES stack is Section 301 (China) and the MFN base: a Chinese steel article pays 50% Section 232 + 25% Section 301 = 75%, while a wholly-steel article from the EU or Japan pays just 50%. A derivative steel product is at the 25% Section 232 tier on its metal content. The UK pays 25% on metal articles under the EPD, and Australia is exempt from Section 232 steel/aluminum. So the common claim that 'every country pays at least 60% on steel' is simply wrong — it double-counts a Section 122 surcharge that does not apply to Section 232 metal.
Anti-Stacking Exceptions
There are two important anti-stacking rules. First, goods subject to the Section 232 automobile tariff (25%) are NOT also subject to Canada/Mexico IEEPA tariffs — they pay Section 232 only. Second, goods subject to Canada/Mexico IEEPA tariffs are exempt from Section 232 steel/aluminum tariffs — but this only applies to Canada and Mexico. These anti-stacking rules prevent double-taxation in specific cases but don't eliminate the overall high cost of importing these products.
Covered Products in Detail
Section 232 coverage is broader than just raw materials. Steel products include: carbon and alloy steel, stainless steel, steel pipe, structural steel, steel wire, and many downstream products. Aluminum products include: unwrought aluminum, aluminum bars, wire, foil, tubes, and many aluminum articles. The automobile tariff covers assembled passenger vehicles, light trucks, SUVs, and key components including engines, transmissions, electrical systems, and body parts. Check your HTS code carefully — some products you might not expect are covered.
Impact on Sourcing Decisions
Because Section 232 applies universally, switching source countries doesn't help for these products. Your best options are: (1) domestic sourcing, which avoids all tariffs, (2) claiming USMCA preference for Canadian/Mexican steel and aluminum (which triggers the anti-stacking rule), (3) seeking alternative materials not covered by Section 232, or (4) using Foreign Trade Zones (FTZs) for inverted tariff situations where the finished product faces a lower duty than the components.
Key Takeaway
Section 232 tariffs are largely unavoidable by switching countries, but the rate depends on the tier: 50% on articles wholly of steel, aluminum, or copper, and 25% on derivative products substantially made of those metals (both on full customs value since the April 6, 2026 restructuring), plus 25% on autos. The UK pays a reduced 25% on steel/aluminum under the EPD, and Australia is exempt. Factor the correct tier into your cost calculations and explore domestic sourcing or USMCA alternatives where possible.
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