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Tariffs

Trump Administration Doubles Section 232 Tariffs on Steel and Aluminum

Strategic Insights

— 1 min read

The Trump administration has imposed a 50% tariff on steel and aluminum products from all countries, excluding the United Kingdom, which has a temporary exemption under the "US-UK Economic Prosperity Deal" announced on May 8, 2025. This decision was made after President Trump issued a proclamation on June 3, 2025, doubling the tariff rate from 25% to 50%. The higher tariffs will be effective from June 4, 2025, and will be applied to both steel and aluminum products, as well as designated derivatives. The proclamation also adjusts the tariff measures to assess the 50% rate on the value of the aluminum or steel content of a particular good.

Key Takeaways:

  • The tariff rate on steel and aluminum products from all countries, except the United Kingdom, has been doubled from 25% to 50%.
  • The US-UK Economic Prosperity Deal has temporarily exempted the UK from the higher tariffs, which will remain at 25% until July 9, 2025.
  • The proclamation has also adjusted the tariff measures to assess the 50% rate on the value of the aluminum or steel content of a particular good.
  • Exceptions are maintained for derivative steel and aluminum products where the primary aluminum or primary steel was smelted/cast or melted/poured in the United States.
  • Goods entered for consumption or withdrawn from warehouse on or after June 4, 2025, are subject to the increased duties.
  • Duty drawback is not allowed for Section 232 tariffs.
  • The proclamation distinguishes between steel/aluminum and non-steel/aluminum content, imposing the 50% tariff only on the value of the aluminum or steel content.
  • Tariff stacking changes have also been made, exempting Canadian and Mexican imports from the IEEPA tariff.

Statistics:

  • Steep increase in tariff rates from 25% to 50% effective June 4, 2025.
  • Temporary exemption for the UK from the higher tariffs until July 9, 2025.
  • The 200% tariff on aluminum from Russia remains in effect.
  • The proclamation adjusts the tariff measures to assess the 50% rate on the value of the aluminum or steel content of a particular good.

Sources:

  • President Trump's proclamation, dated June 3, 2025.
  • CBP guidance on steel and aluminum imports, released on June 4, 2025.
  • US Customs guidance, dated June 4, 2025.

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