Section 232: Tariffs on Steel and Aluminum Increase to 50% and Other Recent Developments

Effective June 4, President Donald Trump signed a proclamation increasing tariffs on aluminum and steel from 25 percent to 50 percent. The increase applies only to imports containing steel and aluminum, but non-steel and non-aluminum components would still be subject to other applicable tariffs.

The increase comes with strict reporting requirements, which carry harsh penalties like fines or loss of import rights for those who violate the terms. The increase was enacted to increase enforcement on false import declarations that have been said to undermine national security and put domestic manufacturers at a competitive disadvantage. There are a few specifics for Canada, Mexico, and the United Kingdom, which all have unique arrangements with the U.S.:

• Aluminum, steel, and derivative products from Canada and Mexico are first subject to the increased 50 percent Section 232 tariff, and only if they are not subject to those tariffs, they are subject to IEEPA tariffs

• Steel and aluminum imports from the United Kingdom will be tariffed at 25 percent until at least July 9, whereafter rates can be adjusted up, down, or transitioned to a quota clause.

Other notable Section 232 updates

• The updated guidance changes the order for calculating the stacking of tariffs. The new priority order moves the Section 232 aluminum and steel tariffs above the IEEPA tariffs on Canada and Mexico 

Critical steps for businesses impacted by tariffs

Our dedicated Tariff Support Services team combines tariff expertise, manufacturing expertise, costing, staffing, and supply chain optimization concepts to guide clients and create comprehensive tariff management strategy that is unique to each client.

When we speak with a client who is concerned about tariffs, we start off by considering:

• Detailed tariff exposure

• Tariff management strategies and compliance

• Current plans to mitigate exposure

In terms of managing the tariff process, we recommend three steps:

• A robust compliance process,

• Regular financial forecasting of exposure, conducted in the same manner as revenue, labor, and material forecasting, and,

• A cross-functional team working on plans to improve or mitigate the tariff costs

Tariff support for all industries

July 9, 2025 marks the end of the 90-day pause on global reciprocal tariffs, and at that time, President Trump will determine whether to increase those tariffs for certain countries. Our Tariff Support team will monitor all developments and post real-time updates. Please fill out the form on this page to discuss your tariff management strategy with one of our specialists.