New Section 232 Steel Tariff Changes: What Importers Need to Know

RGFIII
Jun 4
3 min read

Steel dryers line the vibrant orange walls of a modern laundromat, accentuated by a sleek black and white checkered floor.

The U.S. government has introduced significant updates to Section 232 tariffs on steel and derivative steel products, effective June 23, 2025. These changes, stemming from Proclamation 10896 (February 10, 2025), Proclamation 10947 (June 3, 2025), and the Commerce Department’s Federal Register notice (90 FR 25208, June 16, 2025), will impact importers across various industries. Here’s a breakdown of the key updates and what they mean for your business.

Overview of the Tariff Changes

Section 232 tariffs, enacted under the Trade Expansion Act of 1962, aim to protect U.S. national security by regulating steel and aluminum imports. The latest proclamations expand the scope of these tariffs, adding new derivative steel products and adjusting duty rates, particularly for goods entering the U.S. on or after June 23, 2025.

New Steel Derivative Products Subject to Tariffs

Starting June 23, 2025, the following steel derivative products, classified under Chapters 84, 85, and 94 of the Harmonized Tariff Schedule of the United States (HTSUS), will face additional tariffs:

Combined refrigerator-freezers (HTSUS 8418.10.00)
Small and large dryers (HTSUS 8451.21.00, 8451.29.00)
Washing machines (HTSUS 8450.11.00, 8450.20.00)
Dishwashers (HTSUS 8422.11.00)
Chest and upright freezers (HTSUS 8418.30.00, 8418.40.00)
Cooking stoves, ranges, and ovens (HTSUS 8516.60.40)
Food waste disposals (HTSUS 8509.80.20)
Welded wire racks (HTSUS 9403.99.9020, also subject to aluminum derivative tariffs)

These products join an extensive list of existing steel products already under Section 232, including flat-rolled products, bars, rods, tubes, pipes, ingots, and stainless steel items (HTSUS headings 7206–7229, 7301–7306).

Tariff Rates and HTSUS Classifications

The tariffs apply different duty rates based on the country of origin and the steel’s processing history:

HTSUS 9903.81.91 (All countries except the UK): A 50% ad valorem duty on the steel content value for the newly added goods. This also applies to goods admitted to a U.S. foreign trade zone under “privileged foreign status” before June 23, 2025, and entered for consumption on or after that date.
HTSUS 9903.81.98 (UK only): A 25% ad valorem duty on the steel content value for the newly added goods, including those under privileged foreign status.
HTSUS 9903.81.92 (All countries, including the UK): A 0% ad valorem duty for derivative products processed abroad from steel melted and poured in the U.S., including those under privileged foreign status.

Existing Steel and Derivative Products

The tariffs continue to cover a wide range of steel products, such as:

Flat-rolled products (HTSUS 7208, 7209, 7210, 7211, 7212, 7225, 7226)
Bars, rods, angles, shapes, sections, wire, sheet piling, and rails (HTSUS 7213–7217, 7227–7229, 7301–7302)
Tubes, pipes, and hollow profiles (HTSUS 7304–7306)
Ingots and semi-finished products (HTSUS 7206, 7207, 7224)
Stainless steel products (HTSUS 7218–7223)
Derivative products, including nails, staples, bumper/body stampings, and various articles under HTSUS Chapters 73, 84, 85, and 94 (e.g., HTSUS 7317.00.30, 8708.10.30, 8431.31.00).

Compliance and Filing Requirements

Importers must report duties for the newly added goods under the specified Chapter 99 HTSUS numbers (9903.81.91, 9903.81.98, 9903.81.92). Key compliance notes include:

Steel Content Reporting: Refer to CSMS #65236374 for instructions on reporting the value of steel content and the country of melt and pour.
No Drawback Available: Duties imposed under Proclamation 10896 are not eligible for drawback.
Foreign Trade Zones: Goods admitted to a U.S. foreign trade zone under “privileged foreign status” if entered for consumption on or after June 23, 2025, are subject to the new tariffs.

For additional guidance, consult the Section 232 Tariffs FAQs for details on steel content valuation, dual steel/aluminum duty reporting, and other requirements.

What This Means for Importers

These tariff changes could significantly affect your supply chain and cost structures, especially if you import household appliances, industrial components, or construction materials. Here are some steps to prepare:

Review Your Import Portfolio: Identify whether your products fall under the newly added HTSUS subheadings or existing steel-related classifications.
Assess Cost Impacts: Calculate potential duty increases, particularly for high-steel-content goods subject to the 50% ad valorem rate.
Verify Country of Origin: Confirm the country of melt and pour for your steel products, as this affects tariff applicability (e.g., U.S.-melted steel processed abroad may qualify for 0% duty).
Contact CBP for Support: For entry filing questions, reach out to the CBP Trade Remedy Branch at TradeRemedy@cbp.dhs.gov or your CBP client representative.

Stay Informed

The Section 232 tariff landscape is complex and evolving. Staying updated on regulatory changes is crucial for compliance and cost management. For personalized assistance or to discuss how these tariffs impact your operations, contact our team at [Your Company Contact Information].

For more details, refer to Federal Register notices 90 FR 11249, 90 FR 24199, and 90 FR 25208.

Disclaimer: This blog post is for informational purposes only and does not constitute legal or financial advice. Always consult with a qualified professional for specific guidance.