US Tariffs on Steel & Aluminum

What This Covers

The steel and aluminum surcharge covers steel products, aluminum sheets, bars, semi-finished metals, and related products classified under HTS chapters 72-76. This sector is uniquely governed by Section 232 national security tariffs, which impose a 50% duty on most steel and aluminum imports from most countries worldwide (doubled from 25% in June 2025). The UK pays 25% under the Economic Prosperity Deal, and Australia is exempt. These Section 232 tariffs were not affected by the Supreme Court's February 20, 2026 ruling. The 10% Section 122 tariff (effective February 24, 2026, expiring ~July 24, 2026) applies as an additional layer on top of Section 232.

Most Affected Countries

All countries now face the same 50% Section 232 steel/aluminum rate (doubled from 25% in June 2025), with exceptions for the UK (25% under EPD) and Australia (exempt). Canada, Brazil, and Mexico are significant steel suppliers subject to the full 50% rate. South Korea has a tariff-rate quota (TRQ) arrangement allowing a set volume at reduced rates, with the full 50% applying once quotas are exceeded, plus the 10% Section 122 tariff in all cases.

How Surcharges Stack

Steel and aluminum tariff stacking begins with the 50% Section 232 duty as the base layer, which was unaffected by the SCOTUS ruling and applies to most countries regardless of other trade preferences. On top of Section 232, the 10% Section 122 tariff now applies uniformly, meaning a standard steel shipment faces combined duties of approximately 60%. This is significantly higher than the old regime — before the June 2025 doubling and SCOTUS ruling, a standard country paid 25% Section 232 + reciprocal rate. Now all countries pay 50% Section 232 + 10% Section 122 = 60%. The UK's 25% EPD rate + 10% Section 122 = 35% total. Countries with TRQ arrangements may import within their quota at reduced Section 232 rates, but the 10% Section 122 tariff still applies.

Sourcing Strategies

The uniform 10% Section 122 rate has leveled the playing field among steel exporters, meaning sourcing decisions can focus on quality, lead time, and base pricing rather than navigating country-specific tariff differentials. Importers should closely monitor quota utilization rates for countries with TRQ arrangements, as timing shipments within quota periods still reduces Section 232 costs. Sourcing from Canada and Mexico under USMCA provides the most favorable treatment for the Section 122 component, though Section 232 tariffs may still apply depending on product and exemption status. With Section 122 expiring around July 24, 2026, importers should anticipate a potential reduction in the total tariff stack, though Section 232 duties will persist.