Trump steel and aluminum tariffs: What you need to know

Last updated on Wednesday, June 4, 2025, at 6:45 p.m. ET. We’re updating this blog post as new information becomes available.

On February 10, 2025, President Donald J. Trump issued a proclamation establishing a 25% tariff on steel and aluminum and eliminating all country-specific alternative agreements and exemptions. The 25% steel and aluminum tariffs took effect March 12, 2025.

On June 3, President Trump doubled the steel and aluminum tariffs. The 25% tariffs on steel and aluminum jumped to 50% at 12:01 a.m. ET on June 4, 2025, for all countries except the United Kingdom.

There is no exemption for goods on the water.

The duty rate for steel and aluminum imports from the U.K. will remain 25% due to the U.S.-U.K. Economic Prosperity Deal of May 8, 2025 (EPD). However, the rate may be adjusted or increased to 50% on or after July 9, 2025, if the U.S. determines that the U.K. has not complied with relevant aspects of the EPD. 

The steel and aluminum tariffs apply only to the steel and aluminum contents of imported products, according to a White House fact sheet. The non-steel and non-aluminum contents of imported products are subject to other applicable tariffs.

President Trump invoked Section 232 of the Trade Expansion Act of 1962 to implement the new aluminum and steel tariffs. Section 232 applies to imports that could impair national security. The White House maintains the steel and aluminum tariffs are needed to improve the nation’s ability to meet demand for national defense and critical infrastructure.

Because these steel and aluminum tariffs were established through Section 232, the ruling by the U.S. Court of International Trade on May 28, 2025, doesn’t impact them. Neither does the May 29 ruling by the U.S. Court of Appeals for the Federal Circuit. These rulings pertain only to tariffs implemented under the International Emergency Economic Powers Act (IEEPA).

Here’s what we know as of the date and time of publication.

New 25% tariffs on imports of steel and certain steel derivatives took effect at 12:01 a.m. ET on March 12, 2025. The 25% tariff increased to 50% effective 12:01 a.m. ET on June 4, 2025.

Previously agreed exemptions, quotas, and other agreements were eliminated under the February presidential proclamation. However, the June 3 proclamation keeps the rate at 25% for the U.K., at least until July 9. 

Section 232 tariffs apply to the steel derivative items listed in Chapter 73. As of June 4, 2025, the applicable Section 232 duty is assessed only on the value of the steel content. If the value of the steel content is unknown, the duty must be based on the entire entered value.

Steel content that’s subject to Section 232 duties is not subject to reciprocal tariffs. Non-steel content is subject to reciprocal tariffs and applicable duties, such as IEEPA tariffs.

More information is available in Federal Register notices from February 18 and March 5, and this Cargo Systems Messaging Service (CSMS) from U.S. Customs and Border Protection (CBP). 

Tariffs on aluminum and aluminum derivatives also increased effective 12:01 a.m. ET on March 12, 2025, and again on June 4

For most countries, the aluminum tariff increased from 10% to 25% on March 12, and from 25% to 50% on June 4.

For the following trading partners, aluminum tariffs jumped from 0% to 25% on March 12: Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, Ukraine, the EU, and the U.K. The tariff increased to 50% on June 4, except for the U.K. 

As with steel, previously agreed exemptions, quotas, and other agreements were eliminated effective March 12. However, aluminum imports from the U.K. remain subject to a 25% tariff due to the EPD. That rate could increase on July 9.

Per the CBP, as of June 4, 2025, the applicable Section 232 duty is assessed on the value of the aluminum content. If the value of the aluminum content is unknown, the duty must be based on the entire entered value.

Aluminum content that’s subject to Section 232 duties is not subject to reciprocal tariffs. Non-aluminum content is subject to reciprocal tariffs and other applicable duties, such as IEEPA tariffs.

More information is available in Federal Register notices from February 18 and March 5, and this CSMS from CBP.

The Section 232 tariffs do not apply to imported derivative iron or steel products that were processed in another country from steel articles melted and poured in the U.S. Importers must report the country of melt and pour.

Likewise, the tariffs do not apply to aluminum derivative items that were processed in another country from aluminum articles that were smelted and cast in the U.S. Importers are required to report the primary and secondary countries of smelt and the country of cast on imports of all aluminum articles subject to the Section 232 measures.

The June 4 tariff increase does not apply to steel and aluminum imports from the U.K.

The 200% duty on any aluminum products and derivative aluminum products from Russia is still in effect.

A new stacking order applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on June 4, 2025. The new priority order is:

1. 232 Auto/Auto Parts
2. 232 Aluminum
3. 232 Steel
4. IEEPA Canada
5. IEEPA Mexico

These tariffs are not stackable.

For example, an article subject to the 232 Auto/Auto Parts tariff is not subject to the 232 Aluminum, 232 Steel, IEEPA Canada, or IEEPA Mexico tariffs. But it is subject to other applicable duties, taxes, or fees, such as the IEEPA China tariffs.

See CSMS #65236574 for more specifics.

Duty drawbacks allow companies to reclaim tariffs paid on exported finished products. Under the proclamation of February 10, 2025, no duty drawbacks are available with respect to the new duties on steel and aluminum.

The June 3 proclamation also allows for no drawback.

See the June 3 presidential proclamation for information about articles admitted into a U.S. foreign trade zone. Additional guidance is available on CBP's Cargo Systems Messaging Service.

The U.S. Department of Commerce terminated the product exclusion process as of 11:59 p.m. ET on February 10, 2025, the day President Trump announced the new tariffs. 

This was a change. Under Proclamations 9704 and 9705 (2018), the Secretary of Commerce could provide relief from additional duties based on a request for exclusion from “a directly affected party located in the United States.”

The June 3 proclamation doesn’t mention product exclusions.

Per CBP, all general approved exclusions (GAEs) for aluminum and aluminum derivative products and steel and steel derivative products expired on March 11, 2025; products became subject to 25% ad valorem duties on March 12, 2025, and to 50% ad valorem duties on June 4, 2025.

However, previously granted product exclusions will remain effective “until their expiration date or until excluded product volume is imported, whichever occurs first.”

The Secretary of Commerce had 90 days after February 10 to establish a process for expanding the 25% tariffs to additional derivative steel articles and additional aluminum derivative articles. The Department of Commerce issued an interim final rule for establishing a new tariff inclusion process on April 30. See the Federal Register for more details.

Producers or industry associations may request to add products to the list of derivatives subject to the tariffs. A response should be provided within 60 days.

The most effective way for businesses to manage tariff changes is to automate customs duty compliance.

Avalara Cross-Border automates tariff code classification and delivers real-time calculation of customs duty and import taxes. “We monitor and respond quickly to regulatory changes worldwide,” says Shane Bogdan, Director of Cross-Border Sales at Avalara, “helping to ensure our customers remain in compliance.”

Let Avalara help you stay ahead of global tax changes. Contact us today to learn more.

For more information about the changing tariff landscape, check out:

• How to prepare for Trump tariffs
• What you need to know about the US-Canada trade war
• How to handle U.S.-China tariffs and the end of de minimis
• De minimis exemption changes are coming: Is your business ready?

This post was originally published on February 14, 2025.