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Section 232 Steel and Aluminium Tariffs Restored at 25% as Country Exemptions End

By The Corporate INTL Newsroom · 11 February 2025

Rolled coils of sheet metal lined up in a factory, the goods hit by Section 232 steel and aluminium tariffs

The United States has reset its Section 232 steel and aluminium tariffs. Proclamations signed on 10 February 2025 restore the tariff on steel imports to a full 25%, raise the tariff on aluminium from 10% to 25%, and end the country arrangements and exemptions that had softened the 2018 measures, according to a White House fact sheet published on 11 February.

The fact sheet lists Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine and the United Kingdom as sources that had benefited from exemptions, which the administration says prevented the tariffs from being effective.

What the steel proclamation does

Under the proclamation on steel imports, the alternative agreements with South Korea, Argentina, Australia, Brazil, Canada, Mexico, the EU, Japan and the UK, and the temporary exemption for Ukraine, cease to have effect from 12:01 a.m. eastern time on 12 March 2025. From that point, steel articles and derivative steel articles from those sources become subject to the 25% duty.

The product exclusion process is being shut down. The Commerce Secretary stopped considering or renewing exclusion requests as of 11:59 p.m. on 10 February, and general approved exclusions end on 12 March, although exclusions already granted remain in effect until they expire or the excluded volume has been imported. A new annex extends the Section 232 steel and aluminium tariffs regime to further derivative steel products; for derivatives outside Chapter 73 of the tariff schedule, the duty applies only to the steel content. Derivatives processed abroad from steel melted and poured in the United States are exempt, and the Commerce Department must set up a process within 90 days for adding more derivative products.

Who is affected

The changes hit exporters in allied economies that had relied on quota or exemption arrangements for years, and US manufacturers that buy imported steel, aluminium and downstream products. The fact sheet also describes a crackdown on tariff misclassification and duty evasion, and stricter melted and poured standards, so importers should expect closer scrutiny of country of origin and content declarations.

What happens next

With the main changes taking effect on 12 March, importers have roughly four weeks to review contracts, pricing clauses and supply routes. Trading partners whose arrangements are being terminated now have to decide how to respond before that date.

Sources

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