Section 232 Steel & Aluminum Tariffs: 2025 Update (50% Rate)

Updated 2025 guide to Section 232 tariffs: 50% on steel AND aluminum from ALL countries including Mexico and Canada. NO USMCA exemption. Only US-melted/smelted material exempt.

Last updated: 2025-11-2710 min read

What Are Section 232 Tariffs? (2025 Update)

Section 232 tariffs were imposed in 2018 and significantly increased in 2025. As of June 4, 2025:

  • **Steel**: 50% additional tariff (up from 25%)
  • **Aluminum**: 50% additional tariff (up from 10%)
  • CRITICAL 2025 CHANGE: These tariffs now apply to ALL countries with NO USMCA exemption. Mexico and Canada pay the same 50% as China.

    The ONLY exemption is for US-origin material (US-melted steel, US-smelted aluminum).

    NO USMCA Exemption (2025 Policy Change)

    IMPORTANT: The 2018-2024 USMCA exemption for Section 232 was REMOVED in 2025.

    As of June 4, 2025:

  • Mexico pays 50% Section 232 on steel/aluminum
  • Canada pays 50% Section 232 on steel/aluminum
  • ALL other countries pay 50% Section 232
  • The ONLY exemption remaining:

  • Steel must be MELTED AND POURED in the United States
  • Aluminum must be SMELTED AND CAST in the United States
  • Canadian steel (even if melted in Canada) now faces 50% duty. Mexican aluminum (even if smelted in Mexico) now faces 50% duty.

    This is a major change from 2024 policy.

    Country-Specific Rates (2025)

    All previous quota arrangements and country exemptions have been modified:

  • **All Countries**: 50% tariff (including USMCA members)
  • **UK Exception**: 25% tariff (temporary exception, may change)
  • No More Quotas: The previous quota systems for Brazil, South Korea, and Argentina have been superseded by the universal 50% rate.

    The only way to avoid Section 232 is to source US-melted steel or US-smelted aluminum with proper documentation.

    Products Covered by Section 232

    Section 232 covers a broad range of steel and aluminum products:

    Steel products include:

  • Primary steel (ingots, slabs, billets)
  • Semi-finished steel
  • Flat products (sheets, plates, coils)
  • Long products (bars, rods, wire)
  • Pipe and tube products
  • Stainless steel products
  • Aluminum products include:

  • Unwrought aluminum
  • Plates, sheets, strips
  • Bars, rods, profiles
  • Foil and powder
  • Derivative products (like certain downstream goods containing steel/aluminum) may also be covered.

    How to Avoid Section 232 Tariffs in 2025

    The ONLY way to avoid Section 232 tariffs in 2025:

  • **Source US-melted steel** - Requires mill certificate proving melt AND pour in USA
  • **Source US-smelted aluminum** - Requires documentation proving smelting AND casting in USA
  • **Verify supplier documentation** - "Made in USA" is NOT sufficient; need melt/smelt origin proof
  • What does NOT work:

  • Sourcing from Mexico or Canada (they pay 50% too)
  • Using quota countries (quotas eliminated)
  • Processing foreign metal in USA (must be MELTED/SMELTED in USA)
  • Our platform helps you track steel and aluminum content and calculate the 50% tariff impact.

    Related Industry Guides

    See how these tariff rules apply to specific industries:

    Steel & Aluminum (65% RVC)Automotive Parts (75% RVC)Industrial Machinery (60% RVC)Furniture & Fixtures (55% RVC)

    Frequently Asked Questions

    Q: Does USMCA exempt steel from Section 232 in 2025?

    NO. As of June 4, 2025, there is NO USMCA exemption for Section 232. Mexico and Canada pay the same 50% tariff as all other countries. Only US-melted steel is exempt.

    Q: What if my product contains small amounts of steel/aluminum?

    Section 232 applies to steel and aluminum products specifically. Products containing steel/aluminum components may face different treatment depending on classification.

    Q: Can I request a Section 232 exclusion?

    Product exclusion requests can be submitted to the Commerce Department, but with the 2025 universal 50% rate, success rates are very low. Sourcing US-origin material is the most reliable strategy.

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