What Are Section 232 Tariffs and How Do They Work?

Section 232 of the Trade Expansion Act of 1962 provides the President of the United States with the authority to adjust imports of goods if it is determined that these imports threaten to impair national security. This provision allows for the imposition of tariffs or other trade restrictions to protect domestic industries considered essential for national defense and infrastructure. The law is designed to safeguard the nation’s security by ensuring that domestic production capabilities in key sectors are not undermined by foreign imports.

The primary goal of Section 232 is to balance economic growth with the need to maintain a strong domestic industrial base for defense purposes. It grants the executive branch the power to act under specific circumstances, bypassing the typical legislative process for trade adjustments. This authority is rooted in the belief that certain industries are so fundamental to the country’s security that their viability must be protected from the pressures of international trade.

The Investigation and Imposition Process

The process for implementing Section 232 measures begins with an investigation initiated by the Secretary of Commerce. This investigation can be self-initiated, requested by the head of any other government department, or started in response to a petition from an interested party. Upon initiation, the Secretary of Commerce must immediately inform the Secretary of Defense, who may be consulted for advice.

The Department of Commerce has 270 days from the start of an investigation to conduct its inquiry and submit a report to the President. This report details the findings on whether the specific imports under review are entering the country in such quantities or under such circumstances that they pose a threat to national security.

Once the President receives the report, they have 90 days to decide whether to concur with the Commerce Department’s findings. If the President agrees that a threat to national security exists, they have the authority to determine the nature and duration of the action to be taken. This can include imposing tariffs or setting quotas. The President must then implement the chosen action within 15 days and notify Congress.

Current Tariffs and Country-Level Exemptions

Currently, Section 232 tariffs are applied to steel and aluminum imports. As of early 2025, these tariffs have been set at a 50% rate for most countries, an increase from the previous 25% rate. This tariff applies to the value of the imported steel and aluminum products, as well as certain derivative products that contain these metals.

Initially, some countries had negotiated exemptions from these tariffs, often in the form of tariff-rate quotas (TRQs). TRQs allow a certain volume of a product to be imported at a lower tariff rate, with imports above that quota subject to the higher rate. For example, countries like the European Union, Japan, and the United Kingdom had such arrangements in place.

As of March 12, 2025, all previous country-level exemptions and TRQ agreements were eliminated for steel and aluminum. The only exception is the United Kingdom, which remains subject to the 25% tariff rate pending further negotiations. This change means that imports from nearly all countries, including former partners in exemption agreements like Canada and Mexico, are now subject to the full 50% tariff.

Required Information for a Product Exclusion Request

A product exclusion is a request made by a U.S.-based company to have a specific imported product exempted from Section 232 tariffs. The primary justification for an exclusion is that the product is not produced in the United States in a sufficient and reasonably available amount, is not of a satisfactory quality, or for specific national security considerations. As of February 10, 2025, the Department of Commerce is no longer processing new exclusion requests.

Historically, the applicant had to provide the 10-digit Harmonized Tariff Schedule of the United States (HTSUS) code for the specific product. This code had to be for a single product type and dimension, as requests for a range of products were not permitted. The request also had to specify the total quantity of the product needed for a one-year period.

A comprehensive description of the product’s physical and chemical properties was also required. This included details on chemical composition, dimensions, strength, toughness, ductility, surface finish, and any coatings. The applicant also had to identify the country of origin, the manufacturer, and the supplier of the product.

The Exclusion Request Submission and Review Process

Historically, all exclusion requests had to be filed electronically through the government’s 232 Exclusions Portal. Paper submissions were not accepted, and each distinct product type required a separate submission.

After a request was submitted, it was reviewed for completeness and posted publicly on the portal, which initiated a 30-day public comment period. During this time, domestic producers could file objections, providing evidence that they could supply a comparable product.

Following the comment period, the requester had a seven-day window to submit a rebuttal to any objections filed. The objecting party then had a subsequent seven-day period for a sur-rebuttal. The entire review process, including vetting the request and any objections, was estimated to take approximately 90 business days. Approved exclusions were typically valid for one year.