Section 232 steel imposes 25% ad valorem on covered steel articles since 2018. Country-specific quota systems apply for some origins (formerly EU, Brazil, Argentina, etc.). The 2025 derivatives expansion brought downstream fabricated steel products into scope. Exclusion process exists for specific products with no domestic equivalent.

This guide covers Section 232 Steel – Deep Dive for Importers. Section 232 of the Trade Expansion Act of 1962 authorizes tariffs on imports based on national security findings.

For SMB importers, Section 232 exposure depends on HS classification, country of origin, and current effective rate (which has varied through administrative determinations).

Scope of Section 232 steel

Steel mill products (HTS Chapter 72) plus specific steel articles (Chapter 73). Country-specific arrangements vary.

Country exemptions and quotas

Several countries have negotiated tariff-rate quotas (TRQs) replacing the flat 25% – Australia, EU, Japan, UK, etc., have varied arrangements.

Derivatives expansion (2025)

Brought downstream fabricated steel – fasteners, certain auto parts, fabricated steel products – into Section 232 scope at the HTS subheading level.

Exclusion process

Importers can apply for product-specific exclusions through Commerce. Approval requires demonstrating no U.S. production capacity for the specific product.

Frequently asked questions

Does Section 232 still apply in 2026?

Yes. Section 232 has no statutory expiration. Steel and aluminum since 2018; copper added 2026; pharma effective July 31, 2026. MedTech and semiconductor investigations in flight.

Does Section 232 stack with Section 122?

Generally no. Section 232-covered goods pay Section 232 in lieu of Section 122. Edge cases exist where finished goods contain Section 232 inputs but are not themselves covered.

Can I file for a Section 232 exclusion?

Specific exclusion processes have applied historically (especially for steel and aluminum). Current exclusion windows vary; we track active processes.

How does Section 232 derivative scope work?

Derivatives expansion brings downstream products into scope at the HTS subheading level. Component-level analysis identifies actual coverage for finished goods.

How do you help with Section 232 work?

Scope analysis, supplier shift modeling, product petition filings, and exclusion request support. Engagements typically $5,000-$15,000 fixed-fee.

Get started

Book a 15-minute scoping call to discuss your situation.

About the author

Kyle Peacock is the Principal of Peacock Tariff Consulting, an independent tariff and customs advisory firm serving SMB importers across the U.S., Canada, the U.K., and the E.U. He has been quoted in Forbes, CNN, The Washington Post, BBC, CBC, CTV, Financial Post, Nasdaq, Supply Chain Brain, and Harvard Business School publications. Connect on LinkedIn.