The U.S. Government has issued a new presidential proclamation introducing significant changes to Section 232 tariffs on steel, aluminum, and copper, including certain derivative products. These changes represent a fundamental shift in how Section 232 duties are calculated, applied, and mitigated, with immediate implications for landed cost, sourcing decisions, and compliance requirements.

Duties now apply to the full customs value of covered products, rather than being limited to the value of the metal content. This change may result in a substantial increase in duty exposure, particularly for finished goods, assemblies, and multi-material products.

The revised tariff rates include:

  • 50% tariff on most primary metal articles and certain derivative products
  • 25% tariff on additional derivative products and certain copper goods

Preferential or reduced rates may apply in limited scenarios, including:

  • 10% tariff for products made entirely from U.S.-origin metals
  • Reduced rates for qualifying products originating from the United Kingdom
  • Certain metal intensive industrial and infrastructure products may be eligible for temporary relief through 2027, subject to a 15% effective duty cap, dependent on classification and product eligibility.

Compliance and duty mitigation considerations

  • Drawback limitations, now largely restricted to products from FTA or trade agreement partners where metals are smelted and cast in those countries
  • Foreign Trade Zone (FTZ) requirements, which mandate admission of Section 232 goods under Privileged Foreign Status (PFS), fixing the duty rate at the time of admission
  • Combined with full value tariff application, FTZs continue to provide duty deferral and MPF savings, but offer limited duty reduction benefits for Section 232 goods

What this means for your supply chain planning

  • Increased landed costs due to full value tariff calculation
  • Reduced effectiveness of traditional duty mitigation strategies
  • Greater importance of sourcing strategy, country of origin, and product design
  • Increased compliance requirements and documentation obligations

We recommend importers:

  • Conduct a duty impact assessment under the revised rules
  • Validate HTS classification and Section 232 applicability
  • Review sourcing and origin strategies, including melt and pour traceability
  • Reassess FTZ usage and expected benefits
  • Evaluate drawback eligibility under the updated restrictions
  • Monitor CBP implementation guidance and regulatory updates

The Maersk Trade Compliance and Consulting teams can assist with:

  • Duty exposure modeling (full-value tariff analysis)
  • Product scope and classification validation
  • Supply chain restructuring and sourcing strategy
  • FTZ feasibility reassessment under new rules
  • Drawback eligibility and recovery analysis
  • Ongoing regulatory monitoring and implementation support

Further details and regulatory updates will be made available as guidance is issued. To discuss how these changes may impact your business and identify potential mitigation strategies, please contact our Trade Compliance and Consulting team at compliance.mcsi.nam@maersk.com

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