Tax insight

Steel and aluminum goods under Section 232 tariff coverage expanded

Insight
5 minute read
August 20, 2025

What happened?

The US Bureau of Industry and Security on August 19 published a Federal Register notice (Notice), officially adding 407 additional Harmonized Tariff Schedule of the United States (HTSUS) codes to the list of products that will be considered as steel or aluminum derivative products. According to the Notice, steel and aluminum tariffs based on Section 232 will apply to these products, including the expanded 50% tariff, for goods entered for consumption or withdrawn from warehouse on or after August 18, 2025.

Why is it relevant?

This expansion brings a broad array of downstream finished goods subject to the 50% Section 232 duty on their steel or aluminum content. For example, the Section 232 tariffs now capture products (including derivative products) and industries that span the HTSUS — e.g., consumer goods under Chapter 33 (perfumes and cosmetic preparations), energy under Chapter 27 (liquefied propane), industrial equipment under Chapter 84 (fork-lift trucks and bulldozers), vehicle-related parts and components under Chapter 87, and furniture and household goods under Chapter 94 (furniture, bedding, mattresses, and lamps and lighting fittings). As a result, US importers may face substantially higher costs, which could ripple through supply chains, project budgets, and end-market pricing.

Actions to consider

Companies impacted by this expansion of the Section 232 steel and aluminum tariff should (1) map their product portfolio against the 407 newly listed HTSUS subheadings, (2) engage customs brokers to apply the new codes and report metal content under Chapter 99 supplemental reporting, and (3) assess duty exposure, consider alternative suppliers or materials, and adjust pricing or inventory strategies to mitigate increased costs.

For more details, read the full Tax Insight linked below.