Section 232 Steel Tariffs 2026: Complete Rate Guide

Since June 8, 2026, Section 232 steel tariffs follow the annexes of Proclamation 11032: 50% on Annex I-A articles (base steel products and most chapter-73 steel derivatives, including fasteners, nails, wire, fittings and structures), 25% on Annex I-B (for example chapter-73 household and sanitary goods and many chapter 82-87 and 94 derivatives), 25% by default on Annex I-C mobile industrial equipment, and a temporary 15% on Annex III, all on the full customs value (Proclamation 11021, effective April 6, 2026). UK products made from UK-melted steel pay lower rates under Proclamation 11021 (25% instead of 50% on Annex I-A, 15% instead of 25% on Annex I-B); TariffWatch tools do not model that exception. A metal-content exemption applies where the covered metal is less than 15% of the article's weight (Proclamation 11021 measures the threshold by weight, not value); articles in HTS chapters 72, 73, 74 and 76 cannot use it. This article describes public regulatory information as of publication; it is not customs or legal advice, and importers should confirm current rates for a specific HTS code against CBP and USTR's own published schedules before relying on them for entry or cost planning.

Section 232 of the Trade Expansion Act of 1962 gives the President authority to impose import restrictions, including tariffs, on grounds of national security, following a Commerce Department investigation. The steel tariff program, first imposed in 2018 and modified multiple times since, applies to steel articles under HTS chapter 72 and a growing list of downstream "derivative" products, meaning goods manufactured from steel that would otherwise fall outside chapter 72's own classification but are swept into Section 232 coverage because they are substantially steel by value or composition. The Proclamation 11032 annex rates effective June 8, 2026 are the current baseline; earlier phases of the program set the rate lower, and importers relying on older cost models built around a prior rate should re-verify against the current proclamation rather than assuming past figures still apply.

A specific carve-out exempts articles where the covered metal (steel, in this case) represents less than 15% of the article's total weight from the Section 232 duty, recognizing that some manufactured goods contain only incidental steel content, a steel fastener in an otherwise non-metal product, for example, and would be disproportionately taxed if treated identically to primarily-steel goods. The exemption is not available for articles classified in HTS chapters 72, 73, 74 or 76, so a steel product from those chapters pays the annex rate regardless of weight. Correctly applying this exemption requires a documented weight breakdown of the article's metal content, not simply an assertion that the exemption should apply, and an unsupported exemption claim can itself become the basis for a post-entry compliance review; CBP has previously scrutinized metal-content exemption claims closely given their direct effect on duty owed.

Steel-specific Section 232 coverage centers on HTS chapter 72, with derivative product coverage extending into other chapters, currently chapter 73 (articles of iron or steel) for many of the most common derivative categories, per the rate schedules referenced in TariffWatch's own methodology page, which documents chapter-level rate assignments alongside the underlying USTR source material and Commerce Department trade compliance guidance. Aluminum (chapter 76) and copper (chapter 74) run parallel but separate Section 232 programs with their own rate schedules and are not interchangeable with the steel program even where a single shipment contains multiple covered metals, and a mixed-metal shipment may require separate duty calculations run against each applicable chapter's own current rate rather than a single blended figure.

Separately from the current annex rates, the Bureau of Industry and Security published a Federal Register notice on Aug 6, 2026 (Federal Register document 2026-15961) proposing 14 additional derivative article categories for both steel and aluminum, each with its own proposed additional rate on top of the existing baseline. These 14 categories are proposed only, not yet finalized as of this article's publication; the public comment window on the proposal, filed under regulations.gov docket BIS-2026-0331 (XRIN 0694-XC166), opened Aug 6, 2026 and closed at 11:59 PM Eastern Time on Thursday Aug 27, 2026. An importer whose products fall into one of the 14 proposed categories faces potential additional exposure if the proposal is finalized largely as written; the comment record is now closed, and BIS has not yet announced a final action as of this update.

The reduced Annex III (temporary 15%) and Annex I-C rates under the current proclamation framework are scheduled to run through Dec 31, 2027; the less-than-15%-by-weight metal-content exemption has no such end date, per TariffWatch's methodology page tracking the underlying rate schedule. Importers building multi-year sourcing or pricing models should treat this date as a planning checkpoint, not a guarantee that the underlying rate structure itself remains unchanged before then, since Section 232 modifications have historically been issued via proclamation with limited advance notice.

Section 232 steel tariffs have been modified multiple times via presidential proclamation since the program's original 2018 imposition, with each modification issued as its own proclamation rather than a single fixed rate carried forward unchanged. The June 8, 2026 modification (Proclamation 11032) setting the current annex rates is the most recent of these adjustments as of this article's publication. Because each change is issued by proclamation rather than statute, the rate can be modified again with limited advance public notice, which is exactly why TariffWatch's methodology page documents a version string tied to the specific proclamation currently in effect rather than treating "the Section 232 rate" as a single static figure. Importers building annual budgets or long-term supplier contracts around today's annex rates should build in contingency for a future rate change rather than treating it as fixed through any specific future date, with the narrow exception of the Dec 31, 2027 end date for the reduced Annex III and Annex I-C rates discussed above, which is itself a feature of the current proclamation and not immune to further modification.

To illustrate the calculation mechanics, not as real transaction data, consider a hypothetical importer bringing in a shipment of steel fasteners and wire (HTS chapter 73, Annex I-A) with a total customs value of $500,000. Because most chapter-73 derivatives, including fasteners, nails, wire, fittings and structures, are on Annex I-A at 50%, the Section 232 duty alone on this hypothetical shipment would be $250,000; if the goods were instead chapter-73 household or sanitary articles on Annex I-B at 25%, it would be $125,000. Either figure comes before any applicable Section 301 duty or standard Most Favored Nation tariff that may separately apply to the same HTS code and country of origin. The metal-content exemption cannot reduce this figure, because it is not available for articles in chapters 72, 73, 74 or 76. It matters only for derivatives classified outside those chapters: for example, a hypothetical $50,000 line of Annex I-B machinery parts from chapter 84 in which steel is less than 15% of the article's weight would owe no Section 232 duty instead of $12,500 at 25%, provided the weight breakdown is documented. This example is illustrative only; actual duty calculations depend on the specific HTS classification, country of origin, and documented exemption eligibility of a real shipment, and should be confirmed against CBP's own entry summary process or a licensed customs broker, not estimated from a general example like this one.

A practical exposure calculation starts with confirming the correct HTS classification for the specific product, since a misclassification into or out of a derivative category directly changes duty owed. From there, confirm whether the article qualifies for the metal-content exemption (covered metal less than 15% of the article's weight, documented by a weight breakdown, and not available for chapters 72, 73, 74 or 76), then apply the rate of the Proclamation 11032 annex that lists the code (50%, 25% or a temporary 15%) to the full customs value, and separately flag any HTS codes that fall within the 14 proposed BIS-14 categories as carrying additional exposure pending the proposal's outcome. Running this calculation against actual annual customs value, rather than a single representative shipment, gives a more accurate picture of total program-level exposure than spot-checking individual entries.

Section 232 tariffs are frequently confused with Section 301 tariffs, but the two programs have different legal bases, different product coverage, and can both apply to the same shipment simultaneously in some cases (a "stacking" scenario). Section 232 is a national-security-grounded program administered jointly by Commerce/BIS and the President's proclamation authority; Section 301 addresses unfair trade practices by specific trading partners (most prominently China) and is administered by USTR. An importer confirming Section 232 exposure alone, without separately checking Section 301 applicability for the same HTS code and country of origin, can significantly underestimate total tariff exposure on a shipment subject to both.

Brokers handling Section 232-covered steel shipments report a consistent pattern of classification disputes centered on borderline derivative articles, products that combine steel with other materials in a way that makes the "primarily steel" determination genuinely debatable rather than obvious. A fabricated steel bracket sold as part of a larger non-steel assembly, for example, can be classified either as a standalone steel derivative article or as a component of the finished assembly depending on how the shipment is documented and entered, with materially different duty consequences. Getting this classification right at the time of entry, rather than discovering a dispute during a post-entry CBP review, is one of the most consequential decisions in the entire Section 232 compliance process, since a reclassification after the fact can trigger both additional duty owed and potential penalty exposure for an inaccurate original entry.

The public comment window on the 14 proposed BIS-14 derivative categories closed on Aug 27, 2026, so new comments can no longer be added to that record. Importers whose products fall within the proposed categories should instead track BIS for a final action, map their affected HTS codes now so a final rule can be costed quickly, and keep the product and business-impact detail they would have filed, because it remains useful for any future inclusion or rate proceeding. TariffWatch's comment-letter templates are still available as a do-it-yourself drafting aid for future comment periods.

A domestic manufacturer that does not import steel directly but buys from a U.S. distributor or fabricator can still feel Section 232's effects indirectly, since the distributor's own landed cost, inflated by the tariff, generally passes through into the price of domestically purchased steel and steel-derivative inputs, even when the manufacturer itself never files a customs entry. This indirect exposure is harder to quantify than a direct importer's own duty bill, but sourcing and procurement teams evaluating total input cost should not assume Section 232 is purely an "importer's problem" if a meaningful share of their supply chain touches imported steel at any earlier stage, even one step removed from their own purchase order.

What is the current Section 232 steel tariff rate? It depends on the Proclamation 11032 annex that lists the HTS code (effective June 8, 2026): 50% for Annex I-A articles (base steel and most chapter-73 derivatives, such as fasteners, wire, fittings and structures), 25% for Annex I-B (for example chapter-73 household and sanitary goods) and Annex I-C by default, and a temporary 15% for Annex III, on the full customs value, subject to the metal-content exemption carve-out described above.

Does the metal-content exemption apply automatically, or does an importer have to claim it? An importer must claim and support the exemption with a documented weight breakdown showing the covered metal represents less than 15% of the article's total weight, and it is not available for articles in chapters 72, 73, 74 or 76; it is not applied automatically by CBP based on product description alone, and an unsupported exemption claim can itself become the basis for a post-entry compliance review.

Are the 14 proposed BIS-14 categories already in effect? No. As of this article's publication, they are proposed only, published in the Aug 6, 2026 Federal Register notice and the public comment period closed on Aug 27, 2026. Finalization, and the exact rates and effective date if finalized, had not yet been published as of this writing.

How is copper different from steel under Section 232? Copper runs under its own Section 232 program (HTS chapter 74) with its own rate schedule, separate from the steel program under chapter 72. An importer of copper products should not assume steel program rates or exemptions apply directly; each metal's program has its own current rate and exemption terms.

Where can I verify the current official rate for my specific HTS code? USTR's Section 232 program page and the Commerce Department's trade.gov program pages are primary sources for current proclamation text and rate schedules; a specific entry's actual duty calculation should be confirmed against CBP's own guidance or a licensed customs broker given the fact-specific nature of HTS classification and exemption eligibility, particularly for borderline derivative-article determinations where the correct classification is genuinely disputable rather than obvious from the product description alone.

Related reading: see how the Aug 27 2026 BIS comment window affects metals importers for background on the comment period that closed on Aug 27, 2026, and our methodology page for the underlying rate-schedule sourcing. Run your own exposure estimate with the free Section 232 exposure checker, or use the do-it-yourself comment-letter templates for future comment periods at /tariffwatch/submit-letter.