Restructured and Additional Section 232 Tariffs on Aluminum, Steel, and Copper

Key Takeaways

• Tariffs now apply to the full customs value of covered articles, not merely the value of subject metal content.
• A tiered rate structure replaces the prior uniform approach, with rates ranging from 0% to 50% depending on metal content and origin.
• Prior derivative-product inclusion procedures are terminated, but the administration retains authority to expand coverage on a rolling basis.

On April 2, 2026, the president issued a proclamation significantly restructuring Section 232 tariffs on imports of aluminum, steel, and copper. The new framework took effect for goods entered for consumption on or after April 6, 2026, and materially changes how tariffs are calculated and which products are covered.

New Tariff Structure

The proclamation establishes the following rates, applied to the full entered value of the imported article:

• 50% additional tariff. Products of aluminum, steel, or copper.
• 25% additional tariff. Derivative products substantially made of aluminum, steel, or copper.
• 15% combined minimum tariff (temporary). Certain metal-intensive industrial equipment and electrical grid equipment, applicable through December 31, 2027. For such articles, the Section 232 metal tariff shall be an amount equal to the difference between 15% and the general (HTS Column 1) rate of duty, with a minimum of 0%.[1]
• 10% additional tariff. Products manufactured abroad using at least 95% aluminum, steel, or copper that was melted/smelted and poured/cast in the United States.[2]
• 0%. Products containing less than 15% aluminum, steel, and/or copper.[3]

The 15% threshold for exclusion from the Section 232 metal tariffs is explicitly calculated by weight, resolving prior ambiguities such as whether the cost of fabrication should be included in the subject metal value content.

The 95% threshold to qualify as U.S.-subject metal content (and for the lower 10% tariff rate) is not explicitly based on weight. However, that seems like the safer and logistically simpler approach for importers versus relying on value.

Country-Specific Treatment

• United Kingdom. Provided that at least 95% of the aluminum, steel, and/or copper was melted/smelted and poured/cast in the U.K., reduced rates apply to U.K.-origin products. Articles otherwise subject to 50% tariffs are assessed at 25%, and derivative articles otherwise subject to 25% tariffs are assessed at 15%.
• Russia. The 200% tariff on Russian-origin aluminum and derivatives containing Russian-smelted or -cast aluminum remains unchanged.
• Other trading partners. Existing arrangements with the European Union, Japan, South Korea, and others remain in effect.

Derivative Article Inclusion

Certain derivative articles (listed in Annex II to the proclamation) are no longer subject to Section 232 metal tariffs.

In addition, the prior quarterly inclusion process, the process that allowed U.S. manufacturers or trade associations to request that new products be added to the tariff scope, is terminated. However, the proclamation directs the secretary of commerce and the U.S. trade representative to continue monitoring imports—authorizing them to jointly expand tariff coverage on a rolling basis—and to solicit public comment on such future inclusions where appropriate. Thus, while the prior formal inclusion request process has been eliminated, the administration retains broad discretion to add products where imports are deemed to undermine national security objectives. Without a formal inclusion process, it is also likely that efforts to expand the reach of Section 232 metal tariffs will occur primarily through lobbying efforts.

It is unclear what will happen with the most recent (September 2025) steel and aluminum inclusion process, for which the U.S. Department of Commerce previously delayed its decisions to 2026.

Manufacturing Drawback

Manufacturing drawback is available for Section 232 metal duties for certain derivative articles, though it is strictly limited to articles of a trading partner with which the United States concludes a final “Agreement on Reciprocal Trade” (including the melt/smelt and pour/cast), which are not within the scope of any antidumping or countervailing duty (AD/CVD) order or order on products of a different country. 

Compliance and Forward-Looking Risk

As announced in August 2025, the DOJ has formed a specialized Market, Government, and Consumer Fraud Unit that will work closely with Customs and Border Protection to prioritize criminal charges against companies and individuals that try to evade U.S. tariffs. This is in addition to DOJ expanding civil enforcement of tariff evasion through the False Claims Act (FCA), which can result in the imposition of both treble damages and civil penalties. Indeed, at a recent Federal Bar Association conference, DOJ Deputy Assistant Attorney General Michael Granston stated that DOJ intends to make “illegal foreign trade practices” a focus of FCA enforcement, and Director of the DOJ Civil Fraud Section Jamie Ann Yavelberg specifically referenced misconduct surrounding (1) “where a product is coming from,” (2) the product’s “declared value,” and (3) the “number of goods” involved. The DOJ will also continue to rely on 19 U.S.C. § 1592 to address violations related to the entry of merchandise into the United States.

The April proclamation regarding Section 232 tariffs specifically provides that CBP take any action to “determine whether a product contains metal(s) subject to this proclamation and to address illegal transshipment, undervaluation, and other tariff evasion methods.”

Given the clear intention of the new proclamation to resolve ambiguities regarding the calculation of Section 232 metal tariffs and the increased resources available for criminal and civil prosecutions, we expect enforcement activity to increase substantially, including in connection with companies properly applying the new Section 232 tariff calculations. 

Practical Impact for Importers

Although headline tariff rates are lower for some derivative products, the shift to full value assessment will likely increase actual duty burden for many importers—particularly importers of articles that contain relatively little metal by value but cross the 15% weight threshold and importers of fabricated articles that were previously deducting fabrication costs.

The changes apply without exception for goods already in transit, creating immediate exposure for shipments entering after April 6. Claims for the 10% U.S.-origin metal rate will also require careful substantiation, and origin tracing is likely to face heightened scrutiny.

Given this, importers, particularly those in metal-heavy industries, should:

• Review product classifications and metal content calculations under the new framework.
• Reassess landed costs and pricing assumptions for affected imports.
• Evaluate eligibility for exclusions, reduced rates, or the U.S.-origin metal provision.
• Monitor further guidance and potential scope expansions.

We continue to track implementation developments and are available to assist with product specific assessments, compliance strategies, and risk mitigation.

Endnotes

[1] This temporary tariff does not apply to countries with whom the United States does not maintain “normal trade relations” or countries which the secretary of commerce and U.S. trade representative jointly determine should not benefit. For such countries, the 25% additional tariff generally applicable to derivative products will apply instead.

[2] For derivative articles listed for more than one subject metal (i.e., subject to both aluminum and steel tariffs), at least 95% of each subject metal must be melted/smelted and poured/cast in the United States.

[3] For derivative articles listed for more than one subject metal (i.e., subject to both aluminum and steel tariffs), the combined weight of all metals for which the article is listed must be less than 15% of the total.