The US has introduced a major overhaul of its Section 232 tariff regime, fundamentally changing how duties on steel, aluminum and copper imports are calculated and applied. Effective from 6th April 2026, the new rules mark one of the most significant updates to metal tariffs in recent years.
While the headline tariff rates may appear familiar, the structure, scope and calculation methodology have changed, with important consequences for businesses importing metal products and derivatives.
What the new ruling entails
Section 232 of the US Trade Expansion Act of 1962 allows the US government to impose tariffs or other trade restrictions on imports that are deemed to threaten national security. It has been widely used to target steel and aluminum imports, with tariffs first introduced in 2018 to protect domestic production.
The latest update introduces several important changes to how Section 232 tariffs are structured and enforced. Here's what these changes include:
A shift to full-value tariffs
The most significant change is how tariffs are calculated. Previously, Section 232 duties on many products were applied only to the value of the metal content within finished goods. Under the new rules, tariffs now apply to the full customs value of the imported product.
Even where nominal tariff rates are lower, the total duty paid can increase significantly. Products with relatively small metal inputs, such as machinery, vehicles or industrial equipment, may now face substantially higher tariff costs than under the previous regime.
New tariff tiers and simplified structure
The updated framework introduces a tiered tariff system, depending on the metal content and type of product. Here's what that looks like:
- 50 percent tariff on primary metal goods (e.g. steel and aluminum articles)
- 25 percent tariff on metal-intensive derivative products
- 15 percent transitional tariff (through 2027) on certain industrial and electrical equipment
- 10 percent tariff for products made entirely from US-origin metals
At the same time, products containing 15 percent or less metal content are now excluded from Section 232 duties altogether.
The system is simpler in structure but more impactful in practice. Companies must now assess product composition carefully, as small differences in metal content can shift goods between tariff tiers or remove them from scope entirely.
Expanded scope, but targeted exclusions
The ruling both expands and refines the scope of Section 232 tariffs, with new derivative products being added and low-metal-content products being removed.
Tariff exposure is becoming more dynamic. Businesses can no longer assume that coverage will remain static. Instead, they must monitor ongoing changes to product lists and classifications.
Immediate application with no transition relief
The new rules apply to goods entering the US from 6th April 2026, including shipments already in transit at that time.
Companies may face unexpected cost increases on shipments already en route, highlighting the importance of real-time tariff monitoring and scenario planning.
Greater data and compliance requirements
The updated regime also introduces additional reporting requirements, particularly for metals such as copper, where smelt and cast information may now be required.
Compliance is becoming more data-intensive. Firms need accurate, detailed product and supply chain data to correctly determine tariff exposure and meet documentation requirements.
Why this matters now
These changes come at a time when US tariff policy is already evolving following recent legal and geopolitical developments. Section 232 remains one of the key tools for US trade policy, and the April update signals a move toward:
- Closing perceived loopholes in tariff calculation
- Increasing tariff revenue
- Strengthening domestic manufacturing competitiveness
As tariff regimes become more complex and dynamic, companies will need to move beyond static processes and adopt more agile, data-driven approaches to trade compliance.
In this environment, understanding how tariff rates are calculated and applied will be key to maintaining competitiveness.