50% Tariffs on Steel, Aluminum and Derivatives U.S. Imports Effective June 4, 2025 (Reminder)

Trade Update • June 3, 2025, Updated July 3, 2025

(REMINDER – Chapter 73 and Chapter 76 can now be broken out)
For all products classified in Chapters 73 (steel) and 76 (aluminum):

• Duties may apply only to the value of the steel or aluminum content.

• Importers may now report:

  • A steel/aluminum content line, subject to Section 232 duties.

  • A non-steel/non-aluminum content line, separately, which is subject to Reciprocal tariffs.

resident Donald Trump has issued a new presidential proclamation that sharply increases tariffs on imported steel and aluminum products and their derivatives from 25% to 50% ad valorem, effective 12:01 a.m. ET on June 4. The announcement marks a significant shift in U.S. trade enforcement under Section 232 of the Trade Expansion Act.

The changes also restructure the stacking order of tariffs, end certain exemptions from reciprocal tariffs, and provide new classification and valuation rules for steel and aluminum content. The full proclamation outlines the updated enforcement framework.

Full CBP Guidance can be found below:

CSMS # 65236574 -UPDATED GUIDANCE – Proclamation “Adjusting Imports of Aluminum and Steel in the United States,” Amending Executive Order 14289, “Addressing Certain Tariffs on Imported Articles”

Key Tariff Changes: Steel and Aluminum

Section 232 Steel

• Tariff Increase: From 25% to 50% for all countries except the United Kingdom.

• U.K. Exception: For steel and derivative steel articles that are products of the United Kingdom, the 25% rate will remain in effect until July 9, 2025.

• Future Adjustment: After July 9, the Secretary of Commerce may impose quotas or raise the U.K. duty to 50% if the U.K. is found non-compliant with the U.S.-U.K. Economic Prosperity Deal (EPD) signed on May 8, 2025.

Access List of Steel HTS Subject to Section 232

Section 232 Aluminum

• Tariff Increase: From 25% to 50% for all countries except the United Kingdom.

• U.K. Exception: 25% rate applies for U.K. products until July 9, 2025.

• Russia-Origin Rule: Aluminum and derivatives smelt or cast in Russia, or containing Russian-origin aluminum, are subject to a 200% duty rate.

Access List of Aluminum HTS Subject to Section 232

New Guidance – Content-Based Duty (Reminder)

For all products classified in Chapters 73 (steel) and 76 (aluminum) can now be broken out:

• Duties may apply only to the value of the steel or aluminum content.

• Importers may now report:

  • A steel/aluminum content line, subject to Section 232 duties.

  • A non-steel/non-aluminum content line, separately, which is subject to Reciprocal tariffs.

Reciprocal Tariffs (Steel and Aluminum)

• Apply to non-aluminum/non-steel content lines under HTS 9903.01.25.

• The Section 232 content lines are not subject to reciprocal tariffs under HTS 9903.01.33.

Chapter 99 Tariff Codes for Steel and Derivatives

CSMS # 65236374 – UPDATED GUIDANCE: Import Duties on Imports of Steel and Steel Derivative Products

Chapter 99 Tariff Codes for Aluminum and Derivatives

CSMS # 65236645 – UPDATED GUIDANCE: Import Duties on Imports of Aluminum and Aluminum Derivative Products

Updated Tariff Stacking Order (Effective June 4)

CBP has issued revised guidance outlining the priority order for applying multiple tariffs. Importers must follow this structure to determine which tariffs apply:

• Check for 232 Auto/Auto Parts Tariff

  • If applicable, excludes the article from 232 Steel/Aluminum and IEEPA Canada/Mexico tariffs.

  • USMCA-qualified vehicle parts are not subject to 232 Auto, IEEPA Canada, or IEEPA Mexico tariffs.

• Determine Section 232 Steel and Aluminum Applicability

  • If applicable, product is excluded from IEEPA Canada and Mexico tariffs.

  • Derivative products subject to both steel and aluminum tariffs must be assessed on the value of each material.

  • Russia-origin aluminum and derivatives remains subject to 200% Section 232 tariff, even if other exclusions apply.

• Apply IEEPA Reciprocal Tariffs

  • Only applicable to non-steel or non-aluminum content lines reported separately.

  • Follow Reciprocal tariff rules and reference CSMS #65201384 for details.

Summary Table – New Section 232 Tariff Rates

The information presented is general in nature, and is not intended to constitute legal advice with respect to any event or occurrence, and may not be considered as such.​​ Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.​ Due to the complexity of Customs Regulations, valuations are based on information currently available and should not be considered binding, we recommend obtaining National Customs Rulings in areas of uncertainty.​

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.