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US increases steel and aluminum tariffs to 50%

Date of Publication: June 4, 2025
On June 3, 2025, President Trump issued a Proclamation increasing the current steel and aluminum tariffs from 25% to 50%, as well as making a number of additional adjustments. The justification asserted the increased tariffs would more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the U.S. market and thereby undercut the competitiveness of the U.S. steel and aluminum industries.
The new tariffs go into effect at 12:01 AM on June 4, 2025
. An additional Fact Sheet has been published by the White House as further justification. Previous proclamations and Executive Orders inconsistent with this proclamation are superseded.

Overview of the adjustments

This most recent proclamation includes numerous adjustments that companies will need to take note of to ensure ongoing compliance.
  • Section 232 tariffs on aluminum and steel, including derivative products, from all countries (outside the UK and Russia) will increase from 25% to 50% ad valorem.
  • Section 232 tariffs on aluminum and steel from the United Kingdom will remain at 25% pursuant to the U.S.- UK Economic Prosperity Deal (EPD) moving forward as expected. On or after July 9, 2025, the Secretary of Commerce may adjust the applicable rates of duty and construct import quotas for steel and aluminum consistent with the terms of the EPD, or the Secretary may increase the applicable rates of duty to 50% if he determines that the United Kingdom has not complied with relevant aspects of the EPD.
  • Previously, for aluminum and steel derivative products, the non-aluminum/non-steel portion of those goods were not subject to reciprocal tariffs. However, in this most recent proclamation, it is stated that reciprocal tariffs will apply to the non-aluminum/non-steel portion of the goods. This will result in making the entire value of the product subject to some sort of tariff.
  • Previously, importers were afforded some relief from tariffs on Canadian and Mexican origin goods that were also subject to the 25% fentanyl tariffs. In those cases, those goods were not subject to the Section 232 tariffs on aluminum and steel. In this recent proclamation, the approach is reversed, and goods that are subject to the Section 232 tariffs on aluminum and steel will not be subject to the fentanyl tariffs on Canadian and Mexican origin goods. As a result, these goods will now pay the new higher steel/aluminum tariff of 50% vs. the fentanyl tariff of 25%.
  • With respect to Foreign Trade Zones (FTZ), previously goods were required to be entered in privileged foreign (PF) status, which locked the applicable tariff rate to the rate applicable at time it enters the zone. The rate of duty paid at time of withdrawal from the zone was based on the tariff rate at time goods were designated as PF. Under this recent proclamation, for goods entered in PF status, and listed in Annex II to the proclamation, the duty rate applied when it leaves the zone will be the rate in effect at time of withdrawal (vs. the rate when the goods were designated as PF).
  • The 200% duty on any aluminum products and derivative aluminum products subject to Section 232 that are products of Russia, or where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or where the aluminum articles are cast in Russia, is still in effect. These duties are to be applied to the entire value of the imported good.
  • CBP further clarified that no drawback is available for these articles.
US Customs and Border Protection (CBP) has released three new CSMS messages to provide further guidance:
  • Guidance on Steel and Steel Derivatives (CSMS # 65236374)
  • Guidance on Aluminum and Aluminum Derivatives (CSMS # 65236645)
  • Guidance on adjustments to tariff stacking (CSMS # 65236574)
Additional information can be found on the CBP website under “Section 232 Tariffs on Steel and Aluminum Frequently Asked Questions.”
The tariff stacking order now applies as follows:
  1. 232 Auto/Auto Parts
  2. 232 Aluminum
  3. 232 Steel
  4. IEEPA Canada (Only applies if above don’t apply, and not USMCA)
  5. IEEPA Mexico (Only applies if above don’t apply, and not USMCA)
It is important to note that on June 4, 2025, the comment period closes for the public to file comments in opposition to the Department of Commerce expanding the list of aluminum and steel derivative products that would be subject to tariffs. The official posting of the proposed expansions may be found here. Further information on this subject can be found in our earlier article “US Dept of Commerce Considers Additional Steel - Aluminum Derivatives”.

Increased focus on compliance

We continue to see the increased focus on enforcement when it comes to customs and trade violations. We have highlighted these efforts in a previous Regulatory Insight article, “US Increased Use of False Claims Act for Customs Fraud.”
The Administration has been clear in this proclamation that U.S. Customs and Border Protection (CBP) is to issue "authoritative guidance mandating strict compliance with declaration requirements for steel and aluminum content in imported articles and outlining maximum penalties for noncompliance, including that importers who submit underreported declarations may be subject to severe consequences, including but not limited to significant monetary penalties, loss of import privileges, and criminal liability, consistent with United States law."
These measures are designed to enforce the tariff regulations effectively and ensure that importers adhere to the requirements set forth in the proclamation, thereby protecting U.S. industries and national security interests.

Conclusion

This latest proclamation is just another episode in the constantly evolving tariff landscape. We can expect that uncertainty will continue as key dates for the end of “tariff pauses” approach and lawsuits work their way through the courts. Companies would be wise to constantly monitor their news and policy sources for regular updates and to review the CBP website for its FAQs on this subject as they continue to update them to provide further guidance.
To learn more about how the ONESOURCE Global Trade suite of tools and services can help businesses analyze potential impacts, explore alternative sourcing options, and optimize their trade operations to mitigate risks and capitalize on potential advantages, please contact your Account Manager or Customer Success Manager.