U.S. Steel & Aluminum Import Tariffs Rise to 50%: What Importers Need to Know

On August 15, 2025, the U.S. government announced a significant expansion of tariffs on imported steel and aluminum derivatives. The Department of Commerce confirmed in the Federal Register that 407 new derivative products would be added to the Section 232 tariff list at an additional 50% ad valorem duty, effective August 18, 2025.

 

For companies engaged in shipping from China to USA, this expansion represents more than a compliance adjustment—it is a fundamental cost and strategy shift. Importers must evaluate their Harmonized Tariff Schedule (HTS) codes, recalculate landed costs, and reconsider sourcing and logistics strategies.

This article provides a detailed breakdown of the tariff expansion, including technical filing requirements, product categories impacted, special provisions, and practical steps importers should take.

 

 

Overview of the August 18 Tariff Expansion

The tariff expansion stems from the Section 232 steel and aluminum measures first introduced in 2018. While previous tariffs targeted raw steel and aluminum, subsequent updates extended coverage to derivative products. The August 18, 2025 revision broadens this scope further:

• 407 additional steel and aluminum derivative tariff codes have been added to the Section 232 list.
• 60 tariff codes previously categorized as derivative products have been removed.
• Duties apply to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT, August 18, 2025.

The expansion emphasizes not only the U.S. administration’s continued focus on domestic steel and aluminum production but also the complexity faced by international supply chains.

 

Section 232 Duties on Steel Derivative Products

According to CSMS #65936570, new categories of steel derivative products are now included under Annex I of the HTSUS and subject to Section 232 tariffs. Importers must carefully review updated entry instructions to ensure compliance when filing through U.S. Customs and Border Protection (CBP).

 

Key HTSUS Classifications for Steel Derivatives

• HTSUS 9903.81.90 – Applicable to all countries except the United Kingdom. Covers derivative iron or steel products listed in subdivision (m). A 50% ad valorem duty is imposed based on the steel content.
• HTSUS 9903.81.91 – Applicable to all countries except the United Kingdom. Covers derivative iron or steel products listed in subdivision (n), including steel articles not otherwise classified under Chapter 73. Also imposes a 50% ad valorem duty. Applies even if goods were admitted into a U.S. foreign trade zone with “privileged foreign status” prior to August 18, 2025.
• HTSUS 9903.81.97 – Applicable to the United Kingdom only. Derivative products listed in subdivision (t) are subject to a 25% duty based on steel content.
• HTSUS 9903.81.98 – Applicable to the United Kingdom only. Covers derivative articles not classified under Chapter 73 listed in subdivision (u). Subject to a 25% ad valorem duty.
• HTSUS 9903.81.92 – Applicable to all countries (including the UK). Covers derivative products processed in another country from steel melted and poured in the United States. Duty rate is 0%, recognizing U.S. origin.

 

Reciprocal Tariff Application

The non-steel content of these articles, as reported separately per CBP’s guidance (CSMS #65236374), is subject to reciprocal tariffs under HTS 9903.01.25. However, the steel content under Section 232 is exempt from reciprocal tariffs under HTS 9903.01.33.

 

Section 232 Duties on Aluminum Derivative Products

Parallel to steel, CSMS #65936615 expands Section 232 tariffs to aluminum derivative products. Effective August 18, 2025, importers must classify relevant goods under newly updated HTSUS codes and report aluminum content accurately.

 

Key HTSUS Classifications for Aluminum Derivatives

• HTSUS 9903.85.07 – Applicable to all countries except the UK. Covers derivative aluminum products listed in subdivision (j), classified in Chapter 76. Imposes a 50% ad valorem duty.
• HTSUS 9903.85.08 – Applicable to all countries except the UK. Covers derivative aluminum products listed in subdivision (k), not classified in Chapter 76. Imposes a 50% ad valorem duty.
• HTSUS 9903.85.09 – Applies to derivative products listed in (j), (k), (r), or (s), processed abroad from aluminum smelted and cast in the U.S. Duty is 0%, recognizing U.S.-sourced aluminum.
• HTSUS 9903.85.14 – Applicable to the UK only. Covers derivative aluminum products listed in subdivision (r), classified under Chapter 76. Subject to a 25% duty.
• HTSUS 9903.85.15 – Applicable to the UK only. Covers derivative aluminum products listed in subdivision (s), not classified under Chapter 76. Subject to a 25% duty.

 

Reciprocal Tariff Application

The non-aluminum content of these articles, reported separately, is subject to reciprocal tariffs under HTS 9903.01.25. The aluminum content under Section 232 is exempt from reciprocal tariffs under HTS 9903.01.33.

 

Product Categories Impacted

The 407 newly added tariff codes encompass a wide range of product groups. Businesses importing from Asia—particularly those coordinating shipping from China to USA—should expect higher costs in the following categories:

• Food and chemical packaging materials – including foil, coated containers, and industrial wraps.
• Machinery components – gears, structural elements, and replacement parts.
• Automotive parts – brackets, fasteners, and sub-assemblies critical to auto manufacturing.
• Knives and tools – steel-based hand tools, cutlery, and precision instruments.
• Furniture components – metal structural supports, fittings, and decorative parts.
• Fitness equipment – gym machinery and accessories made with aluminum or steel content.

By expanding tariffs into these downstream products, the U.S. government has extended Section 232’s reach beyond raw materials to everyday manufactured goods.

 

Enforcement Timeline and Customs Procedures

The duties apply to all covered products entered for consumption or withdrawn from warehouse for consumption on or after August 18, 2025, at 12:01 a.m. EDT. Importers must ensure accurate classification and tariff reporting at entry.

CBP has clarified that:

• Duties apply regardless of prior admission into a foreign trade zone if goods are withdrawn after the effective date.
• Filing errors may lead to penalties or seizure of goods.
• Customs will enforce the expanded tariff list based strictly on the Harmonized Tariff Schedule.

 

Special Provisions and Priority Rules

The August 18 guidance also clarifies several rules to avoid overlap or misapplication:

1. Steel tariff remains at 50% – This is not cumulative. It does not “stack” beyond existing tariff rates.

2. Section 301 duties remain in effect – Products already subject to Section 301 (7.5% or 25%) retain those rates, applied in addition to Section 232.

3. Fentanyl-related surcharges – A 20% duty continues to apply where relevant.

4. Reciprocal tariffs – A 10% reciprocal tariff remains, though it does not apply to steel/aluminum portions subject to Section 232.

5. Priority of aluminum over steel – For goods containing both steel and aluminum, aluminum tariffs take precedence.

6. Priority of automotive duties – For goods classified as both automotive and steel/aluminum, automotive duties apply first.

These provisions highlight the complexity of compliance, requiring importers to maintain accurate product classification and tariff reporting.

 

Implications for Global Trade and Importers

The expanded tariff list will directly increase costs for U.S. importers, manufacturers, and retailers. For companies involved in shipping from China to USA, the impact is especially significant:

• Higher landed costs – Importers of affected goods face sharp cost increases, potentially reducing competitiveness.
• Supply chain disruptions – Businesses reliant on low-cost steel or aluminum derivatives may need to shift sourcing to alternative markets or domestic suppliers.
• Industry-specific challenges – Automotive, machinery, and consumer goods sectors face direct input cost inflation.
• Compliance pressure – Accurate HTS classification and content reporting are essential to avoid penalties.

 

Practical Guidance for Importers

To mitigate risks and adapt to the new tariff environment, importers should consider:

1. HS Code Review – Verify classification of all imported goods, especially those falling into affected categories.

2. Supplier Engagement – Request detailed composition data to confirm steel and aluminum content.

3. Cost Modeling – Recalculate landed costs and evaluate pricing strategies.

4. Diversification – Consider alternative sourcing markets or suppliers with lower tariff exposure.

5. Customs Compliance – Strengthen documentation and filing processes to ensure accurate reporting.

6. Freight Forwarding Partnerships – Collaborate with experienced freight forwarders who specialize in shipping from China to USA to optimize routes, consolidate shipments, and reduce overall costs.

 

The August 18, 2025 expansion of Section 232 duties underscores the U.S. government’s continued focus on steel and aluminum imports, extending tariffs to a broader range of derivative products. With 407 new tariff codes added and duties reaching as high as 50%, importers must act decisively to manage compliance, costs, and supply chain strategy.

 

For businesses engaged in shipping from China to USA, this policy shift is both a challenge and an opportunity. Those who proactively assess their exposure, adapt sourcing models, and strengthen logistics partnerships will be better positioned to remain competitive in a changing trade environment.