Steel and Aluminum Imports Hit with 25% Tariff

On February 10, 2025, President Donald Trump implemented a major change to the United States’ trade policy concerning steel and aluminum imports. By signing two proclamations—Adjusting Imports of Steel Into the United States and Adjusting Imports of Aluminum Into the United States—he reinstated and increased tariffs on these critical commodities. These adjustments, part of Trump’s America First Trade Policy, have significant implications for both importers and domestic industries, particularly those in manufacturing, construction, and related sectors.

The proclamations restore 25% tariffs on steel imports that were initially introduced under the Section 232 national security provision during Trump’s first term. The tariffs extend to a broader range of steel products and now include certain derivative steel articles that were previously excluded. Importantly, the measures also raise aluminum tariffs from 10% to 25%, a move that will impact a range of aluminum products entering the U.S. market. One of the most significant aspects of the February proclamations is the elimination of previous exclusions granted to specific countries and regions. Since 2018, alternative agreements allowed countries like Argentina, Brazil, the EU, South Korea, and the U.K. to avoid certain tariffs. These exclusions are now terminated, meaning that imports from these regions will once again face the full 25% tariff starting on March 12, 2025.

For businesses that previously benefited from these exclusions, this is a major shift. They will no longer be able to apply for new exceptions, and all existing exclusions will expire by March 12. The implementation of these tariffs will likely lead to price increases, impacting both businesses and consumers. Beyond reintroducing tariffs on the primary steel and aluminum products, the new proclamations also include a 25% tariff on additional derivative steel and aluminum articles. These items are specified in an upcoming Annex I, and the Secretary of Commerce will establish a process within 90 days for including additional products. Businesses in the steel and aluminum industries will need to pay close attention to these changes, as they may face tariffs on products not previously included under the original Section 232 actions.

U.S. Customs and Border Protection (CBP) has been directed to strictly enforce the new tariffs, prioritizing investigations into potential misclassification of goods and assessing maximum monetary penalties for violations. The focus on compliance will add an extra layer of responsibility for importers to ensure that all steel and aluminum products are correctly classified and subject to the appropriate duties. Importers must be aware that no duty refunds or drawbacks will be available, making careful planning and documentation even more critical. Importers and other businesses affected by the tariffs should take immediate action to understand their exposure to the new rules. Companies should assess their risk exposure, reach out to foreign suppliers to understand potential price hikes, and evaluate the duration of contracts. Engaging with lawmakers to voice concerns and potentially influence trade policy before the March 12 deadline could also be a useful strategy.

In addition, businesses should review their supply chains to evaluate alternative sources to mitigate price increases. With the tariffs being applied to all imports from affected countries, businesses may need to make adjustments to their sourcing strategies. Enhancing customs compliance practices, including reviewing the classification of goods and documentation, will be essential to avoid penalties. In addition to the 25% tariffs on steel and aluminum, these proclamations signal a tighter regulatory environment, pushing companies to adapt to stricter import and customs policies. By taking proactive steps now, businesses can better navigate the challenges posed by these new tariffs and position themselves to thrive in an increasingly complex trade environment.