Trump issued a proclamation this afternoon formally adjusting the Section 232 steel & aluminum tariff Here are the critical changes Trump made to the tariff:
1.) The section 232 steel & aluminum tariff is increased from 25% to 50%. This increase applies to ALL tariff numbers listed on the section 232 steel list and aluminum list, including downstream derivative products. The ONLY exception is for products from the UK. Trump is allowing steel & aluminum products from the UK to continue to be assessed the 25% tariff rather than the 50% tariff.
Please also note that the U.S. government is reviewing requests to expand the list of downstream derivative classifications to be added to the section 232 steel & aluminum list. Please be prepared for additional classifications to be subject to the steel & aluminum tariff.
2.) The proclamation makes a VERY important change to the way derivative products are assessed the tariff. Previously, derivative products that are partially made out of steel / aluminum were assessed the section 232 tariff and were allowed to disclaim the Reciprocal tariff for both the steel/aluminum portion of the product AND the non-steel/non-aluminum portion of the product. Under this proclamation, only the steel/aluminum portion will be exempted from the Reciprocal tariff. The non-steel / non-aluminum portion of the product will be subject to the Reciprocal tariff moving forward.
3.) Steel and aluminum products classified under HTS chapters 73, and 76 were previously subject to the section 232 tariff based on the full value of the product. Under the new proclamation, importers will be allowed to separately declare the value of the non-steel/non-aluminum portion of their products classified under chapter 73 and 76. The non-steel/non-aluminum portion will not be subject to the section 232 tariff, but will be subject to the Reciprocal tariff.
These changes are effective 12:01 EST June 4, 2025. Importers will have little time to adjust.
Customs brokers who have pre-cleared entries may have to make adjustments to their entries for shipments that have yet to arrive.
