Section 232 Tariff Guide: Steel, Aluminum & Copper

Section 232 tariffs are national security-based import duties imposed under the Trade Expansion Act of 1962. As of 2026, these tariffs apply to steel (50% for China), aluminum (50% for China), and copper (50% newly imposed in 2025). This guide explains the history, current rates, affected products, exclusion process, and compliance requirements for Section 232 tariffs.

What Is Section 232?

Section 232 is a provision of the Trade Expansion Act of 1962 that grants the President authority to adjust imports of goods that the Department of Commerce determines threaten to impair national security. The process involves:

  1. Investigation by the Department of Commerce (Bureau of Industry and Security)
  2. Determination of whether imports threaten national security
  3. Presidential action to adjust imports through tariffs, quotas, or other measures

The key distinction from other tariff mechanisms is that Section 232 is based on national security, not unfair trade practices (Section 301) or dumping/subsidies (AD/CVD).

History of Section 232 Tariffs

Steel (March 2018 - Present)

Date Action Rate
March 2018 Initial imposition 25% globally
2018-2019 Country exemptions and quota agreements Variable
2024 Rate increase discussions 25% maintained
2025 Rate increase for China 50% for China

Affected products: HTS Chapter 72 (iron and steel) and Chapter 73 (articles of iron and steel), covering flat-rolled products, bars, rods, tubes, pipes, and structural shapes.

Aluminum (March 2018 - Present)

Date Action Rate
March 2018 Initial imposition 10% globally
2024 Rate increase 25% globally
2025 Rate increase for China 50% for China

Affected products: HTS Chapter 76, covering unwrought aluminum (7601), bars/rods/profiles (7604), plates/sheets/strip (7606), foil (7607), and tubes/pipes (7608, 7609).

Copper (2025 - Present)

Date Action Rate
2025 New Section 232 investigation and tariff 50%

Affected products: Unwrought copper, copper bars, rods, and certain copper articles. This is the newest addition to the Section 232 tariff regime, reflecting concerns about domestic copper production capacity for defense and critical infrastructure applications.

Current Section 232 Tariff Rates (2026)

Product China Most Other Countries Quota Countries
Steel 50% 25% Duty-free within quota
Aluminum 50% 25% Duty-free within quota
Copper 50% 50% N/A (new)

Quota Agreement Countries

The following countries have bilateral agreements allowing quota-based duty-free imports:

Country Products Agreement Type
Argentina Steel, Aluminum Absolute quota
Australia Steel, Aluminum Duty-free
Brazil Steel Absolute quota
Canada Steel, Aluminum Duty-free (USMCA)
Mexico Steel, Aluminum Duty-free (USMCA)
South Korea Steel Absolute quota (70% of 2015-2017 average)

Note: Quota countries' agreements are subject to revision. If imports exceed agreed volumes, the full tariff rate may apply.

Product Coverage Details

Steel Products Covered

HTS Chapter Product Categories Examples
7208-7212 Flat-rolled products Hot-rolled, cold-rolled, coated sheet
7213-7215 Bars and rods Rebar, wire rod, bars
7216 Structural shapes Beams, angles, sections
7217 Wire Steel wire
7218-7229 Specialty steel Stainless, alloy steel
7301-7306 Tubes and pipes Line pipe, structural tubing
7307-7312 Pipe fittings, structures Flanges, structures

Aluminum Products Covered

HTS Code Product Category Examples
7601 Unwrought aluminum Ingots, billets, slabs
7602 Aluminum waste/scrap Scrap (exempt from Section 232)
7604 Bars, rods, profiles Extrusions
7605 Aluminum wire Wire
7606 Plates, sheets, strip Flat-rolled over 0.2mm
7607 Foil Foil under 0.2mm
7608 Tubes Seamless, welded tubes
7609 Tube fittings Flanges, couplings

Exempt: Aluminum scrap (HTS 7602) is exempt from Section 232 tariffs. Aluminum cans in finished form are also generally exempt.

Section 232 Exclusion Process

Who Can File?

Filing Process

  1. Submit request through exclusions.bis.doc.gov
  2. Provide justification: Product not available from US producers in sufficient quantity/quality, or specific national security justification
  3. US producers may object: Domestic producers have 14 days to object to an exclusion request
  4. Commerce Department decision: Typically within 30-90 days
  5. Exclusion validity: One year from approval, renewable

Common Grounds for Approval

Compliance Requirements

Steel Import License (SIMA)

All steel imports must obtain an Automatic Import License through the SIMA (Steel Import Monitoring and Analysis) system:

  1. Register at SIMA portal
  2. File license application before import arrival
  3. License number must appear on entry summary (CBP Form 7501)
  4. No cost for the license

Aluminum Import License

Unlike steel, aluminum imports do not currently require a separate SIMA license. Standard import documentation applies:

Country of Origin Rules

For Section 232 purposes, country of origin is determined by:

Impact on Importers

Cost Impact

For a Chinese steel product with $10,000 CIF value:

Before 2018 After 2018 (25%) After 2025 (50%)
$0 Section 232 duty $2,500 Section 232 duty $5,000 Section 232 duty

Supply Chain Adjustments

Many importers have:

  1. Shifted sourcing to quota countries (Canada, Mexico, South Korea)
  2. Invested in domestic US steel/aluminum suppliers
  3. Applied for product-specific exclusions
  4. Explored alternative materials and designs

How HSBot Can Help

Use HSBot to:

  1. Verify Section 232 coverage for your specific HTS code
  2. Calculate total tariff including Section 232, Section 301, and AD/CVD
  3. Check SIMA license requirements for steel imports
  4. Compare sourcing countries for tariff optimization
  5. Identify exclusion opportunities for your products

Related Resources