Section 232 duties apply to steel and aluminum articles and their derivatives, and since June 2025 the rate is 50 percent. An April 2026 proclamation moved derivatives to the full customs value of the product, replacing the old metal-content calculation.
What a derivative product is
Section 232 started with steel mill articles and aluminum articles: the raw and semi-finished metal. The 2020 proclamations extended it to derivative products, finished goods made from steel or aluminum, and the 2025 expansion widened the list again. In August 2025 the Commerce Department added more than 400 product categories to the derivative list, covering wind turbines, mobile cranes, bulldozers, railcars, furniture, compressors, pumps, and hundreds of other manufactured goods.
The test is classification, not intent. A product is a derivative if it falls under a listed HTS code, regardless of what the importer calls it or what it is used for. The classification decides, and the classification is the importer's responsibility. A product that was duty-free last year can be a 50 percent derivative this year, because the list changed, not the product.
Related reading on this site: TariffTrack HQ and Section 232 Melt and Pour: The Supplier Paperwork Behind the Rate cover the neighbouring problems in more depth.
The rate, and what it applies to
On June 3, 2025, Proclamation 10947 doubled the Section 232 rate from 25 percent to 50 percent, effective June 4, 2025, for steel and aluminum and their derivatives from nearly all trading partners. The United Kingdom kept a 25 percent rate. Copper joined the regime in July 2025 at the same 50 percent rate.
The base changed too. Derivatives used to be dutiable on the value of their steel or aluminum content only, which meant the importer had to calculate the metal content of every product. An April 2026 proclamation replaced that with a classification-based method: Section 232 duties now apply to the full customs value of the covered product, with the rate set by its HTS classification and the tariff category it falls into. The content calculation is gone. The duty is bigger, and the paperwork is simpler, which is a trade most importers would not have chosen.
What to do about it
The first step is a classification review of every product against the current derivative list, not the list from last year. The list grew by hundreds of codes in 2025, and a product that was clear before may be covered now. The review should be done by a broker or trade counsel, because the classification is the liability.
The second step is the landed cost. A 50 percent duty on the full customs value changes the per-unit math completely, and a product that was profitable on the metal-content basis may not be profitable anymore. Reprice, re-source, or stop carrying it. The third step is the entry paperwork: the entry summary has to report the Section 232 duty on the right lines, with the right HTS codes, and a wrong line is a penalty, not a rounding error. Confirm the current status with a licensed customs broker before a sourcing decision.
Frequently asked questions
What is a Section 232 derivative product?
A finished good made from steel or aluminum that falls under a listed HTS code. The list grew by more than 400 categories in August 2025, covering machinery, furniture, compressors, and more.
What is the Section 232 rate in 2026?
50 percent for steel and aluminum and their derivatives from nearly all trading partners, set by Proclamation 10947 in June 2025. The United Kingdom kept a 25 percent rate.
Do Section 232 duties apply to the metal content or the full value?
Since the April 2026 proclamation, they apply to the full customs value of the covered product, by HTS classification. The old metal-content calculation is gone.
How do I know if my product is a derivative?
Check its HTS classification against the current Section 232 derivative list. The classification decides, and a broker or trade counsel should confirm it.