Expanded Steel and Aluminum Tariffs Now in Effect

The Section 232 tariffs on steel and aluminum just got a major expansion, and importers will need to brace for the impact. As of August 18, 2025, hundreds of additional derivative products have been pulled into the 50% tariff net, marking one of the largest single expansions since the duties were first introduced.

Background and CBP Guidance

Earlier this year, Proclamations 10895 and 10896 set the stage for a broad application of tariffs on aluminum and steel derivative products, and the Department of Commerce has now followed through with a sweeping update. U.S. Customs and Border Protection (CBP) has issued detailed guidance on how these new tariffs must be reported at entry, including country-of-smelt and cast requirements for aluminum, along with clear filing instructions for importers and brokers.

Scope of Coverage

The expansion is massive: 407 new product codes have been added, spanning across more than a dozen HTS chapters. For steel, the additions sweep in items ranging from industrial machinery and construction equipment to auto parts and truck trailers. Aluminum coverage is equally broad, touching everything from electrical equipment and consumer appliances to bearings, compressors, and HVAC units.

Automotive suppliers are among the hardest hit, with multiple vehicle parts now subject to the 50% tariff. Observers have also pointed out that the U.S.-Mexico-Canada Agreement (USMCA) exemption that once applied to certain auto parts no longer shields those products, bringing North American trade squarely under the Section 232 framework.

Other industries are also facing steep adjustments. Trucking companies, for example, will now see tariffs applied to semi-truck trailers. Manufacturers of construction and agricultural machinery, along with producers of industrial robots and material-handling equipment, are questioning how domestic factories benefit when the very equipment they need becomes more expensive.

Importers will also need be aware of:

• Reciprocal tariffs on non-steel and non-aluminum content. 
• Existing 200% tariff on Russian-origin aluminum remains fully in force.
• There are no transit exemptions. Shipments arriving after August 18 are subject to the duties, even if they were already on the water before the effective date.
• The guidance also confirms that tariff liabilities stack – meaning Section 232 duties are in addition to any other trade remedies, such as antidumping/countervailing duties or Section 301 tariffs.

Reactions and Implications

The breadth of coverage of the new tariffs hit more than $130 billion in imports based on 2024 data – on top of the $190 billion already affected. Combined, at least $320 billion worth of goods are now covered under Section 232 tariffs.

Economists warn that the additional costs will feed into inflationary pressures, as producers pass higher input costs along the supply chain. July’s Producer Price Index (PPI) data already hinted at rising domestic pricing trends.  The timing of these new duties could accelerate that pattern.

The Commerce Department’s decision reflects a broadening policy approach: ensuring that not just raw metals but also their downstream derivatives remain subject to heavy protection. The expansion may not stop here – Commerce has signaled more rounds of inclusion ahead, with the next review slated for September 2025 and another in January 2026.

What This Means for Importers

For U.S. importers, the message is clear: plan now for higher landed costs and potential supply chain disruptions. CBP has instructed importers to update classification databases and entry filing processes immediately to avoid clearance delays. Companies that rely on foreign steel and aluminum derivatives – particularly in the automotive, construction, and equipment sectors – should review sourcing strategies, pricing models, and customer contracts to account for the new cost burden.

With the tariff net widening and no pathway for removal once products are listed, trade professionals expect continued complexity ahead. Strategic planning will be critical as the Section 232 program continues to evolve.

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. Whether you have questions about tariffs, trade agreements, or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com, call 239-489-9900, or reach out here.

Contributor: Rebecca Anderson

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.