April 2026 Update to Section 232 Tariffs on Steel, Aluminum, and Copper

  • Insights

On April 2, 2026, the administration announced a significant overhaul of the Section 232 tariff program. These changes, which officially took effect on April 6, represent a substantial shift in how over $70 billion in annual imports are taxed upon entry into the US.

For U.S. importers, the 2026 update changes not just the rates you pay, but the entire methodology used to calculate your tax liability. If your supply chain involves steel, aluminum, or copper, understanding the new rules is essential to calculating your costs and avoiding penalties.

The 50% Rate: Base Metal Articles

The baseline 50% tariff remains in place for products made entirely or almost entirely of aluminum, steel, or copper. These are typically raw materials or primary metal goods.

Common examples include:
  • Steel coils, pipes, and fasteners
  • Aluminum sheets, cans, and wire
  • Copper rods and primary tubing
  • Metal fencing and structural beams

The Big Change: "Derivative Products" at 25%

The most impactful shift in 2026 concerns “derivative products,” items that contain these metals but are not exclusively made from them.

The Old Rule: Previously, importers often only had to calculate the value of the metal content within a product and apply the tariff to that specific portion.
 
The 2026 Rule: The “metal content” calculation has been eliminated. Now, if a product is classified as a covered derivative, the entire customs value of the finished good is taxed at a flat 25%.
 
This change can significantly increase the duty burden on metal-intensive finished goods. Examples of affected derivative products include:
 
  • Home Appliances: Refrigerators, washing machines, and ovens.
  • Heavy Equipment: Construction machinery and industrial tools.
  • Furniture: Desks, chairs, or shelving units with metal frames or legs.

How to Qualify for 10% Rates: U.S.-Sourced Metal

There is a significant incentive for onshoring your metal supply. If a product is manufactured abroad but uses metal that was melted, poured, or smelted entirely in the United States, the tariff rate drops to 10%.

To claim this lower rate, importers must maintain rigorous supply chain documentation and certifications from their manufacturers to prove the origin of the raw metal inputs.

Does Your Product Fall Under the New 232 Rules?

The Section 232 tariffs are tied strictly to your product’s classification. Most affected items fall within specific chapters of the Harmonized Tariff Schedule (HTSUS), but many derivative products are tucked away in unexpected categories.

HTS Chapters to Watch

  • Chapter 72 and 73: Iron and Steel
  • Chapter 74: Copper
  • Chapter 76: Aluminum
  • Chapters 84, 85, and 94: Common chapters for derivative finished goods like machinery, electronics, and furniture.

Because these tariffs now apply to the full value of the product, identifying your exact 10-digit code is more critical than ever. If you aren’t sure where your goods fall, see our guide on How to Find Your HS Code to get started.

Navigate the 2026 Tariff Landscape with Confidence

The April 2 proclamation included numerous exclusions and special rates that vary by product type and country of origin. If you are planning to import affected products, it’s best to consult a trade professional to avoid penalties and shipment delays.

Sourcing internationally and looking for supply chain support? Contact us to see how we can help.

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