Policy Update: U.S. Tariffs on Imported Steel and Aluminum

Note: For analysis of the initial import tariffs policy put into effect by President Trump, see our other blog post here.

In the next step for his America First Trade Policy, President Trump issued a 25% tariff on all steel and aluminum imports to the U.S. that will go into effect next month according to a proclamation on February 10. The order revives the Section 232 tariffs that were implemented during the first Trump Administration in 2018, raising tariffs on aluminum imports from 10% to 25% and reinstating the full 25% tariff on steel imports from countries that had received exemptions in subsequent years, specifically Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom. All exemptions to the steel tariffs for these countries will become ineffective when the order goes into effect as of 12:01 a.m. EDT on March 12, 2025.

The proclamation also revokes the authority for the Secretary of Commerce to grant relief for certain products from the tariffs, stating that “the Secretary shall not consider any product exclusion requests or renew any product exclusion requests in effect” as of 11:59 p.m. EST on February 10. Granted product exclusions remain effective until their expiration date or until the excluded product volume is imported, whatever occurs first. All existing general approved exclusions will be terminated as of March 12, 2025.

Reaction

Leaders in Mexico, Canada, and the European Union widely condemned the decision, calling it “not justified”, “unfair” and “unacceptable.” While the Trump Administration asserts that the tariffs will protect America’s critical steel and aluminum industries by closing loopholes that have allowed for unfair trade practices and global excess capacity, businesses around the U.S. have also warned about fallout from the tariffs, with many manufacturers finding it difficult to plan next steps or determine if President Trump will follow through in March.

Seeking SIA Member & Industry Input

SIA has added questions about these tariffs to our industry survey, and would ask that you please complete these questions so that we can measure industry response.