New developments in Section 232: what it means for metal imports

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A recent shift in US trade policy has introduced important changes for global metal exporters. On April 2, 2026, a new statement revised the existing Section 232 duties, altering how steel, aluminium, and copper imports are treated.

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Businesses that depend on supplying these materials to the US market face significant consequences of these changes and demand close attention.

The table below shows the duties in place following the proclamation:

A key change reshapes how duties on derivative products are applied. Earlier, importers had to calculate the value of the metal within a finished item, with a 50 per cent tariff applied only to that portion. Now, most derivative goods and some copper items face a flat 25 per cent duty on the total product value. This removes the need to separate metal content. Depending on how much metal is used, the overall tariff impact may rise or fall, but the simpler method should reduce compliance effort and delays.

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At the same time, the product scope has been narrowed. Items with minimal relevance to metals or security, such as food, furniture and kitchenware, are no longer included. A new threshold also applies: products with under 15 per cent steel or aluminium by weight are exempt from these duties.

Further adjustments relate to preferential tariff rates tied to production origins. Products made up of at least 95 per cent steel, aluminium, or copper that are melted and poured (in the case of steel) or smelted and cast (for aluminium and copper) within the United States will benefit from a reduced duty rate of 10 per cent. Separate arrangements apply to goods originating in the United Kingdom. Under existing agreements between the two countries, qualifying products meeting the same 95 per cent threshold and processed in the UK may be subject to duties of either 25 per cent or 15 per cent, depending on the category.

 The proclamation also addresses certain types of industrial machinery and manufacturing components that would otherwise fall under Section 232. For these items, a transitional measure has been introduced: until 2027, the applicable duty will generally be the higher of 15 per cent or the standard rate listed in column 1 of the Harmonized Tariff Schedule of the United States (HTSUS).

Another structural shift involves the process by which additional products are brought under these measures. The previous “inclusions” mechanism—where domestic producers could request that specific derivative goods be added—has been discontinued. Going forward, decisions about expanding the scope will be made jointly by the Secretary of Commerce and the U.S. Trade Representative, potentially on a rolling basis. Although the proclamation suggests that stakeholder input may be sought, the precise procedure for future additions remains uncertain.

From an exporter’s perspective, two broad implications stand out.

Duty rates for many products are going to change. The nominal rates for aluminium and steel might look lower, but the overall financial impact will be highly dependent on the proportion of metal found in each product.

Some items might profit from the revised classifications under specific annexes, potentially leading to reduced tariffs.

Second, the revised framework introduces opportunities to qualify for exemptions or reduced rates. Exporters dealing in processed metal goods should carefully track the origin of their raw materials—specifically where the metals are melted, poured, smelted, or cast—to determine eligibility for preferential treatment, particularly for goods linked to the United States or the United Kingdom. At the same time, manufacturers should pay close attention to the metal content of their products, especially if it approaches the 15 per cent threshold that could exempt them from duties altogether.

As these changes take effect, further updates and clarifications may follow, particularly regarding the addition of new products to the scope of the measures. Ongoing monitoring will therefore be essential for businesses engaged in exporting metal-related goods to the United States.

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