Update to US Section 232 Metals Tariffs: What You Need to Know Now

Overview 

On April 2nd, President Trump issued a Presidential Proclamation revising the Section 232 tariffs on steel, aluminum and copper. The update introduces a tiered system for applicable duty rates and a new methodology for tariff assessment. The US Customs and Border Protection (CBP) has also issued a related guidance message, and a fact sheet has been published on the White House website. 

These changes are effective for goods entering the United States as of April 6th.  

 

What Importers Should Note 

New Tariff Rates and Assessment Methodology 

• Section 232 tariffs on steel, aluminum, and copper will no longer apply to only the metal content value of an article. They will now be applicable to the full customs value of the imported product. 

• Products classifiable under US HTS chapters 72, 73, 74, and 76 listed in Annex I-A of the proclamation will be subject to a 50% Section 232 tariff.  

• Derivative steel, aluminum and copper goods classified under the product classifications, or 8-digit subheadings, in Annex I-B of the proclamation are now subject to a 25% Section 232 tariff.  

Reductions and Exemptions 

• Derivative articles classified outside chapters 72, 73, 74 and 76 and containing less than 15% by weight of the subject metal(s) are exempt from the Section 232 tariffs.  

• If a classification is subject to the Section 232 tariffs for more than one metal, the combined weight of those metals must be below 15% to qualify for the exemption.  

• Some items previously subject to Section 232 metal tariffs have been removed from the subject classifications. Products classified under the 10-digit classifications and 8-digit subheadings outlined in Annex II will no longer be subject to section 232 metal tariffs.  

• Products classified under the 8-digit subheadings and 10-digit classifications in Annex III will be subject to a temporary reduced Section 232 tariff rate.  

• For products in Annex III with a general duty rate less than 15%, the combined general duty rate and Section 232 tariff will be 15%.  

• For products in Annex III with a general duty rate higher than 15%, no additional Section 232 duty will be due. This temporary reduction is set to expire December 31st, 2027.  

• For articles listed as subject to Section 232 tariffs for more than one metal, the tariffs will apply only once.  

• For example, for a derivative article listed in Annex I-B as subject to both steel and aluminum Section 232 tariffs, the tariff will be applied at a 25% rate.  

• Goods classified under the subject headings that do not contain any of the subject metal will continue to be exempt from Section 232 duties.  

• Steel and aluminum articles classified under the classifications and subheadings in Annex I-A that are made with at least 95% UK origin steel or aluminum will be subject to a reduced Section 232 rate of 25%. 

• Derivative steel or aluminum articles listed in Annex I-B that are made with at least 95% UK-origin steel or aluminum will be subject to a reduced Section 232 rate of 15%.  

• Derivative steel, aluminum and copper articles made with at least 95% US-origin steel, aluminum, or copper will be subject to a reduced Section 232 rate of 10%. 

• For derivative steel or aluminum products listed in Annex III and made with at least 95% US-origin steel or aluminum, if the general duty rate is less than 10%, the combined general duty rate and Section 232 tariffs will be 10%. If the general duty rate is higher than 10%, no additional Section 232 duty will apply.  

• Derivative articles that are motorcycle parts classifiable under chapters 84, 85, or 87, and used in the manufacturing of motorcycles in the US, will be exempt from Section 232 metal duties.  

 

Additional Notes  

• Goods claiming a Chapter 98 provision for duty-free status will be eligible and subject to the terms of the claimed provision, except for 9802.00.60, where duties will be assessed based upon the full value of the article.  

• Subject products admitted to a US Foreign Trade Zone, except those eligible for “domestic status” under 19 CFR 146.43, must be admitted under privileged foreign status.  

• Country of melt and pour/smelt and cast is still required to be reported. Products made with aluminum smelted or cast in Russia will continue to be subject to a 200% Section 232 duty.  

• Limited manufacturing drawback claims are available with respect to the Section 232 duties, for products listed in Annex I-B and Annex III. 

• Goods must be the product of the UK, EU, Japan, South Korea, Mexico, Canada, or another trading partner with which the US has completed a final Reciprocal Trade agreement.  

• For aluminum and copper products, the metal must also be smelt and cast in a trade agreement partner country.  

• The article cannot be subject to an anti-dumping or countervailing duty order. 

• No other drawback claims will be available for the Section 232 duties announced in the proclamation. 

 

Recommended Actions 

Importers are encouraged to take the following steps:  

• Cross reference US HTS codes against Annex I-A, I-B, II, and III to determine the Section 232 tariffs the products are subject to, if any.  

• Update commercial invoices products subjected. “Apportioned” metal values are no longer valid for Section 232. Calculations and duties will apply to the full customs value of the product.  

• Review supply chains to determine if products are made with US or UK origin metals, or if they contain less than 15% by weight of subject metals.  

• These products may be eligible for reduced Section 232 rates or an exemption.  

Please note to watch for upcoming CBP CSMS messages regarding new copper smelt/cast reporting requirements.  

 

Delmar Support 

Our Customs Advisory and Consulting experts remain available to assist with important questions on the topic at hand. Delmar will continue to provide pertinent updates as they become available.   

For additional information and assistance, please contact your local Delmar Representative.