Section 232 Tariffs 2026: Steel, Aluminum & Copper Rates After the April Restructuring

On April 2, 2026, the White House signed a proclamation that fundamentally restructured how Section 232 tariffs work. Steel and aluminum tariffs jumped to 50%. Copper was brought under Section 232 for the first time. And the calculation basis shifted from metal content value to full customs value — a change that, in practice, doubled or tripled the duty bill for many importers overnight.

The new rates took effect on April 6, 2026. If you import anything containing steel, aluminum, or copper, your costs changed that day whether you realized it or not.

Here's what the proclamation actually did, and what it means for your next shipment.

Know your HTS code? Calculate your current duty rate — it already reflects the April 6 changes.

By VatCheck Research Team. Sources: Presidential Proclamation of April 2, 2026, CBP CSMS #68253075, BIS Section 232 guidance, USITC Harmonized Tariff Schedule, Perkins Coie, White & Case, Norton Rose Fulbright analysis.

What Changed on April 2 (And What Didn't)

Section 232 tariffs have existed since 2018 for steel and aluminum, and since August 2025 for copper. The April 2 proclamation didn't create these tariffs — it restructured them in three critical ways:

1. Rates increased across the board

| Metal | Old Rate | New Rate (April 6+) | |---|---|---| | Steel articles | 25% | 50% | | Aluminum articles | 10-25% | 50% | | Copper articles | 50% (since Aug 2025) | 50% (unchanged rate, changed basis) | | Derivative articles | 25% | 25% (unchanged) | | De minimis (<15% weight) | Exempt | Exempt (unchanged) |

2. Calculation basis shifted to full customs value

This is the change that matters most and that most coverage glossed over. Previously, tariffs on derivative articles were calculated by splitting the customs value between the metal content and non-metal content, then applying the tariff rate only to the metal portion.

Under the new structure, the tariff applies to the full declared customs value of the entire article. A $100,000 piece of industrial equipment with $15,000 worth of steel now pays 25% on $100,000 (= $25,000), not 25% on $15,000 (= $3,750). That's a 567% increase in the actual duty amount, even though the "rate" is the same 25%.

3. Country-specific exclusions largely eliminated

Prior to April 6, several countries had negotiated exemptions or alternative arrangements:

Canada and Mexico had partial exemptions under USMCA-related agreements
Australia had a complete exemption through a quota system
UK had reduced rates on certain steel products

The April 2 proclamation revoked most of these. The only remaining special rates are:

UK-origin steel/aluminum: 25% (down from the standard 50%)
US-smelted metals: 10% if the article is made entirely of US-smelted, cast, and poured steel, aluminum, or copper

Everything else — regardless of country of origin — faces the standard 50%/25% rate structure.

The Rate Tiers: Where Does Your Product Fall?

The restructured Section 232 uses five tiers. Your rate depends on what you're importing:

Tier 1 — 50% (Annex I-A): Metal Articles

Applies to articles made entirely or almost entirely of steel, aluminum, or copper. These are the raw and semi-finished metal products.

Steel examples (HTS Chapters 72-73): flat-rolled steel, bars, rods, wire, angles, shapes, rails, pipes, tubes, fittings, fasteners, springs, stoves, sanitary ware, and other articles of iron/steel.

Aluminum examples (HTS Chapter 76): unwrought aluminum, bars, rods, wire, plates, sheets, foil, tubes, pipes, structures, containers, cables, and other articles.

Copper examples (HTS Chapter 74): refined copper, copper alloys, bars, rods, profiles, wire, plates, foil, tubes, pipes, tube fittings, stranded wire. For the full copper breakdown, see our copper tariff guide.

Tier 2 — 25% (Annex I-B): Derivative Articles

Applies to finished goods that contain substantial steel, aluminum, or copper but aren't primarily metal products. The key criterion: the covered metal must comprise 15% or more of the total weight of the article.

Examples: machinery with steel frames, vehicles with aluminum body panels, electronics with copper wiring (where copper exceeds 15% of weight), appliances with steel housings, furniture with metal structural elements.

The 15% weight test is critical. If covered metals are less than 15% of total weight, the article is exempt from Section 232 entirely (see Tier 5 below).

Tier 3 — 15% (Annex III): Grid and Industrial Equipment

A transitional rate for metal-intensive electrical grid equipment and industrial machinery. This was designed to avoid disrupting critical infrastructure projects.

Examples: power transformers, switchgear, high-voltage transmission equipment, certain industrial generators.

Expiration: This rate expires December 31, 2027, at which point these products revert to the standard 25% or 50% rate.

Tier 4 — 10% (Annex IV): US-Smelted Metals

Applies only to derivative articles made entirely of steel, aluminum, or copper that was smelted, cast, and poured in the United States. This incentivizes domestic metal processing.

Documentation: You'll need mill certificates showing the metal was US-smelted. CBP may request these at any time.

Tier 5 — 0% (De Minimis Exception)

If the covered metal (steel, aluminum, or copper) is less than 15% of the total weight of the imported article, no Section 232 tariff applies.

Important exception: This de minimis rule does not apply to products classified in HTS Chapters 72, 73, 74, or 76. If your product is classified in one of those metal-specific chapters, the 50% rate applies regardless of weight percentage.

The 15% Weight Exception: How It Works in Practice

The weight threshold is the single most important classification question for importers of finished goods. Here are some practical scenarios:

Scenario A: CNC Milling Machine (Steel = 22% of weight)

A German CNC machine weighing 4,500 kg with a steel structural frame weighing 990 kg.

Steel as percentage of total weight: 990 ÷ 4,500 = 22%
Exceeds 15% threshold → classified as derivative article
Rate: 25% on full customs value
If the machine is valued at $180,000: duty = $45,000

Scenario B: Desktop 3D Printer (Steel = 8% of weight)

A Chinese 3D printer weighing 25 kg with a steel frame weighing 2 kg.

Steel as percentage of total weight: 2 ÷ 25 = 8%
Below 15% threshold → de minimis exception applies
Section 232 rate: 0%
Still subject to MFN rate + Section 122 + Section 301 (if from China)

Scenario C: Insulated Copper Cable (Copper = 55% of weight)

500 meters of insulated copper electrical cable weighing 200 kg, with copper conductor weighing 110 kg.

Copper as percentage of total weight: 110 ÷ 200 = 55%
Exceeds 15% threshold → could be classified as a copper article (if copper is the predominant metal) at 50%, or as a derivative at 25%
Classification depends on HTS code: if classified under Chapter 74 (copper), it's 50%. If classified under Chapter 85 (electrical equipment, e.g., HTS 8544), it's 25%.

The HTS classification determines which Annex applies. Two nearly identical products can face different Section 232 rates depending on how they're classified. If you're near the line between chapters, a CBP binding ruling is worth the effort.

How Section 232 Interacts With Other Tariffs

Section 232 doesn't exist in isolation. Here's how it stacks with everything else:

Section 232 + Section 122

Rule: If a product faces Section 232 at the 50% rate (Annex I-A), Section 122 does not apply. The 50% rate supersedes the 10% Section 122 surcharge.

Exception: If a product faces Section 232 at the 25% derivative rate (Annex I-B), Section 122 does still apply. You pay both.

| Product | Section 232 | Section 122 | Total Additional | |---|---|---|---| | Steel bars (Annex I-A) | 50% | 0% (waived) | 50% | | Machine with steel frame (Annex I-B) | 25% | 10% | 35% | | 3D printer, steel <15% | 0% (exempt) | 10% | 10% |

Section 232 + Section 301

Rule: Both apply simultaneously, in full. No offset, no deduction.

A Chinese steel product classified under Annex I-A faces:

50% Section 232 + 25% Section 301 (List 1) = 75% in surcharges (plus MFN base rate)

This is why effective duty rates on some Chinese metals exceed 80%.

Section 232 + IEEPA/CAPE Refund

Section 232 tariffs are not eligible for IEEPA refunds through the CAPE portal. Only IEEPA-specific duties (HTS 9903.01 codes) qualify. If your entries included both Section 232 and IEEPA charges, CAPE will refund only the IEEPA portion.

For the complete guide to how all tariff layers stack and calculate, see our tariff formula guide.

Steel: What Changed and What It Costs

Before vs. After April 6

| Category | Before | After April 6 | |---|---|---| | Rate on steel articles | 25% | 50% | | Calculation basis | Metal content value | Full customs value | | Country exemptions | Canada (partial), Australia, EU (quota) | None (UK at 25% only) | | Applicable HTS chapters | 72, 73 + derivatives | 72, 73 + derivatives |

Cost Impact Example

A $200,000 shipment of steel pipe from South Korea:

| Period | Rate | Basis | Duty | |---|---|---|---| | Pre-April 6 | 25% | Metal content (~80% = $160,000) | $40,000 | | Post-April 6 | 50% | Full customs value ($200,000) | $100,000 |

That's a 150% increase in the actual duty payment. The rate doubled and the basis widened.

Aluminum: What Changed

Aluminum saw the biggest rate increase in percentage terms:

| Category | Before | After April 6 | |---|---|---| | Rate on aluminum articles | 10% (most countries) | 50% | | Secondary rate | 25% (some countries) | 50% (unified) | | Calculation basis | Metal content value | Full customs value |

Canada was by far the largest US aluminum supplier at the time of restructuring. Canadian aluminum previously had negotiated rates; now it faces the full 50%. The impact on downstream US manufacturers who rely on Canadian aluminum has been significant.

Copper: First-Time Section 232 Coverage

Copper was added to Section 232 in August 2025 (Proclamation 10962) and restructured alongside steel and aluminum on April 6, 2026. See our detailed copper tariff guide for the full breakdown, including:

The five-tier rate structure specific to copper
Why the calculation basis change hit copper importers hardest
HTS Chapter 74 code breakdown
Top copper source countries and duty impact
The upcoming Commerce Department report (June 30) that could change copper classifications

Pharmaceutical Tariffs: A New Category Under Section 232

The April 2 proclamation also announced 100% tariffs on patented pharmaceuticals — the first time Section 232 has been applied to drugs. This is a separate category with different effective dates:

| Effective Date | Who It Covers | |---|---| | July 31, 2026 | 17 named major drug companies (Pfizer, J&J, Merck, AbbVie, etc.) | | September 29, 2026 | All other pharmaceutical companies |

The pharmaceutical tariff has a built-in onshoring incentive:

100% tariff (no compliance plan)
20% tariff (approved onshoring plan submitted to Commerce)
0% tariff (approved onshoring plan + MFN pricing agreement)

These incentive rates are valid through January 20, 2029.

Generic drugs, which are not patented, are generally exempt from the pharmaceutical tariff. But associated active pharmaceutical ingredients (APIs) may be covered if they're used to manufacture patented drugs.

This is a developing area. We'll publish a dedicated pharmaceutical tariff guide as implementation guidance from Commerce and CBP is issued.

The Exclusion Process: Can You Get an Exemption?

Section 232 has always had an exclusion process, but the April 2 restructuring made it harder to qualify.

How it works:

File an exclusion request through the Bureau of Industry and Security (BIS) 232 Exclusions Portal
Provide evidence that the product isn't available domestically in sufficient quantity or quality
Public comment period (30 days) where domestic producers can object
BIS reviews and issues a decision (historically takes 3-9 months)

What changed: The proclamation tightened the standard for "not available domestically." BIS has been rejecting a higher percentage of exclusion requests since April, particularly for steel products where domestic capacity exists even if pricing is uncompetitive.

Copper has no exclusion process. Unlike steel and aluminum, the copper tariff proclamation did not establish an exclusion mechanism. There is currently no way to request a copper tariff exemption, regardless of domestic availability. This is one of the most criticized aspects of the copper tariff. See our tariff exemption guide for the full exclusion process.

Upcoming Dates That Matter

| Date | Event | Impact | |---|---|---| | June 30, 2026 | Commerce Department copper report due | Could reclassify copper derivative categories | | July 24, 2026 | Section 122 expiration | Affects stacking with 232 derivatives | | July 31, 2026 | Pharma tariff for 17 named companies | 100% duty on patented drugs begins | | September 29, 2026 | Pharma tariff for all companies | 100% duty expands to all pharmaceutical manufacturers | | December 31, 2027 | 15% grid equipment rate expires | Grid equipment reverts to 25% or 50% | | January 20, 2029 | Pharma onshoring incentive expires | 20%/0% incentive rates end |

Frequently Asked Questions

What is the Section 232 tariff rate on steel in 2026?

50% on articles made entirely or primarily of steel (HTS Chapters 72-73), applied to full customs value. Derivative articles containing steel pay 25% if steel exceeds 15% of total weight.

Are copper tariffs new?

Copper was first added to Section 232 in August 2025. The April 2, 2026 restructuring changed the calculation from copper content value to full customs value. Full copper tariff details.

How does the 15% weight exception work?

If steel, aluminum, or copper makes up less than 15% of the total weight of your imported article — and the product is classified outside HTS Chapters 72, 73, 74, or 76 — Section 232 does not apply. The threshold is measured by weight, not value.

Do Section 232 tariffs stack with Section 301?

Yes, fully additive. A Chinese steel product faces 50% Section 232 plus up to 25% Section 301 plus the MFN base rate. Effective rates on Chinese metals regularly exceed 80%.

Can I get an exclusion from Section 232 tariffs?

For steel and aluminum, yes — file through the BIS 232 Exclusions Portal. Approval rates have dropped since the April 2 restructuring. For copper, no exclusion process exists.

When do pharmaceutical tariffs take effect?

July 31, 2026 for 17 named companies. September 29, 2026 for all others. The rate is 100% but can be reduced to 20% or 0% through onshoring plans.

Last updated: May 2026. Section 232 rates are subject to additional proclamations and modifications. For current rates on specific HTS codes, use our calculator. Official Section 232 information is available at BIS.gov and CBP Section 232 FAQ.