On June 3, 2025, President Trump signed a proclamation doubling tariffs on imported steel and aluminum—from 25 percent to 50 percent. The change took effect just hours later, at 12:01 am ET on June 4. According to the administration, the move aims to protect national security by strengthening domestic production of critical materials.
The increased tariffs apply to most countries, though the UK is temporarily exempt. As part of a recent trade agreement, UK exports of steel and aluminum will remain subject to the existing 25 percent tariff until at least July 9, depending on compliance with the US-UK deal terms.
The recent proclamation also updates how Section 232 tariffs apply to products under Chapters 73 and 76. Previously, importers had to pay the full Section 232 duty on these items. Now, only the value of the steel or aluminum content is subject to those duties.
Importers should take steps to identify and document the steel or aluminum content in their shipments to ensure the correct duty is applied. The remaining portion of the product’s value—the non-metal content—will be subject to IEEPA reciprocal tariffs instead.
What This Means for Importers
- Higher Costs: Industries like automotive, construction, and consumer goods can expect price hikes as the cost of steel and aluminum rises.
- CBP Guidance Issued: US Customs and Border Protection has released new instructions for importers. Highlights include:
- Tariff Priority Order: When multiple tariffs apply, CBP will prioritize in the following order—232 Auto/Auto Parts tariffs, followed by 232 Aluminum, and then 232 Steel.
- Exemptions: Products under trade agreements such as the United States-Mexico-Canada Agreement (USMCA) may still qualify for reduced or zero tariffs.
Global Response
The move has drawn criticism from key trading partners. Canada has voiced concern over the potential economic fallout, and the European Union is reportedly weighing retaliatory tariffs. This raises the possibility of growing trade friction in the weeks ahead.
The administration has set a July 9 deadline for countries to submit alternative proposals to avoid further tariff hikes—signaling a potential opening for negotiations but also a firm stance if no progress is made.
Updated Guidance from CBP
CSMS # 65236374 – UPDATED GUIDANCE: Import Duties on Imports of Steel and Steel Derivative Products