US President Donald Trump has signed a new proclamation revising the steel and aluminum tariff regime under Section 232, maintaining the 50 percent duty on primary imports while introducing new rules for derivative products. The revision is aimed at strengthening trade measures and addressing national security concerns related to metal imports, according to an official statement released by the White House.
The updated framework introduces a simplified tariff calculation methodology, applying duties to the full value of imported products rather than only to the metal content, with the intention of eliminating underpricing practices and reducing compliance complexity for importers.
Revised duties for derivative products
Under the new rules, products made entirely or almost entirely of steel, aluminum or copper, such as steel coils and aluminum sheet, will be subject to a flat 50 percent tariff applied to their full value. At the same time, products containing 15 percent or less of these metals will be exempt from Section 232 tariffs. Derivative products containing significant amounts of steel, aluminum or copper will now face a 25 percent tariff applied to the total product value. This marks a shift from the previous system, where tariffs were calculated only on the metal content within such goods.
In the meantime, certain metal-intensive industrial equipment and electrical grid components will benefit from a reduced tariff rate of 15 percent until 2027. This measure is intended to support the expansion of domestic industrial capacity while maintaining access to critical equipment. Products manufactured abroad using entirely US-origin steel, aluminum and copper will also be subject to a lower tariff rate of 10 percent.
Steelmakers welcome changes
Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), has applauded the actions taken by US President Trump to ensure the continued effectiveness and durability of the Section 232 steel tariffs, stating that all steel mill products, including steel pipe and tube, will receive the full benefit of the 50 percent tariffs on steel products. He also highlighted the importance of simplifying the application of tariffs on derivative steel products, noting that these changes will improve the efficiency and long-term durability of the tariff regime, which remain essential to address the adverse impacts of global steel excess capacity that continues to grow due to foreign subsidies and other trade-distorting practices. According to the association, maintaining strong trade measures is critical to preserving domestic production capacity and supporting continued investment in the US steel sector.
