Understanding the New 50% Steel and Aluminum Tariffs: What Importers Need to Know
On May 30, 2025, President Donald Trump announced that tariffs on steel and aluminum imports to the United States will double from 25% to 50%, effective June 4, 2025. This change, enacted under Section 232 of the Trade Expansion Act of 1962, aims to protect domestic industries and boost national security by reducing reliance on foreign metals. For importers, this significant increase will impact costs, supply chains, and compliance requirements. Here’s a clear breakdown of what you need to know.
Why the Tariff Increase?
The administration cites national security concerns, pointing to declining U.S. steel and aluminum production capacity and excessive global supply, particularly from China. The goal is to revitalize domestic industries by making imported metals more expensive, encouraging buyers to source from U.S. producers. The tariffs apply to all countries, with no exemptions for major suppliers like Canada, Mexico, or the EU, unlike previous policies. Notably, aluminum imports from Russia face a separate 200% duty.
What Products Are Affected?
The 50% tariff covers raw steel and aluminum as well as a wide range of derivative products, such as:
- Automotive parts (e.g., door hinges, car body stampings)
- Construction materials (e.g., pipes, fittings, nails, bolts)
- Consumer goods (e.g., aluminum cans, appliances, furniture)
- Machinery and equipment parts (e.g., heat-exchange units, fan blades)
Importers should check the Harmonized Tariff Schedule of the United States (HTSUS) for specific classifications, as the tariffs apply to products under Chapter 76 (aluminum) and various steel-related codes. Derivative products processed abroad but containing U.S.-melted steel or U.S.-smelted aluminum may qualify for exemptions, provided importers submit proper documentation, such as mill test certificates or proof of origin.
For lists of the articles affected by the Steel & Aluminum Section 232 Tariffs, please see the below:
Base Steel Products
Steel derivatives
Base Aluminum products
Aluminum derivatives