Section 232 tariffs are among the most impactful trade measures currently in effect. Unlike country-specific tariffs, Section 232 duties apply to imports from every country in the world. Steel and aluminum rates were doubled from 25% to 50% in June 2025. If you're importing steel, aluminum, copper, automobiles, or related products, you need to understand how these rates work and how they stack with other tariffs.
Current Section 232 Rates
As of March 2026, Section 232 tariffs cover several major product categories: Steel faces a 50% tariff on all imports (doubled from 25% in June 2025). Aluminum faces a 50% tariff on all imports (doubled from 25% in June 2025). Copper faces a 50% tariff (added in 2025). 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 25% on steel/aluminum under the Economic Prosperity Deal. Australia is exempt from steel/aluminum Section 232.
How Section 232 Stacks with Other Tariffs
Section 232 tariffs stack on top of country-specific rates. For example, steel imported from China pays: 10% Section 122 tariff + 50% Section 232 = 60% total. Steel from the EU (Germany) pays: 10% Section 122 + 50% Section 232 = 60%. Even countries with low base rates face significant total duties on steel and aluminum — every country pays at least 60% total on steel (50% Section 232 + 10% Section 122). This stacking effect makes Section 232 products among the most expensive to import.
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 unavoidable for steel (50%), aluminum (50%), copper (50%), and autos (25%) regardless of source country. The UK pays 25% on steel/aluminum under the EPD, and Australia is exempt. Factor these into your cost calculations and explore domestic sourcing or USMCA alternatives where possible.
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