Section 232 Steel and Aluminum Tariffs Raised to 50%
Presidential Proclamation 10772, issued in February 2025, doubled the Section 232 tariff on steel mill products from 25% to 50% and raised the aluminum tariff from 10% to 20%. The increases affect imports from all non-exempt countries and take effect March 12, 2025.
The White House issued Presidential Proclamation 10772 on February 10, 2025, citing continued threats to domestic steel and aluminum production capacity from global overcapacity, particularly from China-origin material transshipped through third countries. Effective March 12, 2025, the Section 232 tariff on steel mill products (HTS Chapter 72 and select Chapter 73 items) increased from 25% to 50%, while aluminum products (HTS Chapter 76) saw their tariff rise from 10% to 20%. These are stacked rates on top of the applicable MFN duty rate.
Country exemptions under previous proclamations for the EU, UK, Japan, South Korea, and several other countries were significantly narrowed. The EU and UK now face tariff-rate quotas (TRQs) with a strict annual cap; imports within the quota are exempt, but above-quota imports pay the full 50% or 20% rate. South Korea and Japan lost their quota exemptions entirely and are now subject to the full tariff. Brazil and Australia retain full exemptions under bilateral arrangements struck in 2022.
For downstream manufacturers importing steel-containing products — from automobiles to construction equipment — the tariff increase compounds existing Section 301 exposure on Chinese-origin components. The Commerce Department's product exclusion portal remains open for companies that can demonstrate domestic unavailability, but processing times have extended to 8-12 months. CBP has also increased scrutiny of country-of-origin declarations for steel products, with special attention to goods transiting through Mexico and Vietnam.