On June 3, 2025, President Trump signed a Presidential Proclamation increasing current Section 232 steel and aluminum, and derivatives, from 25% to 50%, effective June 4, 2025, at 12:01 a.m.
Key points from the Proclamation are here:
- U.S. steel and aluminum tariffs will increase from 25% to 50% effective for goods arriving or withdrawn from warehouses on or after June 4 at 12:01 a.m.
- This change is for all countries except for goods from the UK which will continue to be subject to 25% steel and aluminum tariffs until July 9, at which time the rate will either increase to 50% or quotas may be imposed.
- Importers who placed steel and aluminum goods into an FTZ at a lower rate before June 4 will now be subject to the 50% tariff when the goods are withdrawn. Goods admitted on or after June 4 will be subject to whatever duty rate is in place when they're withdrawn.
- The order removing tariff stacking for goods from Canada or Mexico was reversed. Steel and aluminum goods subject to the 50% tariffs are now not subject to IEEPA illicit drugs tariffs. Compliance with the U.S.-Mexico-Canada Free Trade Agreement still exempts auto parts from the 25% IEEPA tariffs and the 25% tariff on auto parts, but applicable steel and aluminum tariffs are now 50%.
- Derivative goods previously not subject to IEEPA reciprocal tariffs are now subject to the 10%. IEEPA reciprocal tariffs on the non-steel or aluminum content. This reciprocal rate may increase in early July following the conclusion of the 90-day adjustment for multiple countries. The 50% tariff is applicable on the steel and aluminum derivative value.
On June 4, 2025, CBP issued updated guidance regarding tariff stacking in CSMS # 65236574 outlining the new priority order to be used during the entry process. The new priority order prioritizes 232 aluminum and steel over IEEPA tariffs.
- 232 Auto/Auto Parts
- 232 Aluminum and derivatives
- 232 Steel and derivatives
- IEEPA Canada
- IEEPA Mexico
- IEEPA Reciprocal
Resources:
Adjusting Imports of Steel and Aluminum into the United States June 04, 2025.