U.S. Overhauls Metal Tariffs With Tiered Full-Value Rates Now in Effect

Overview

• The revamped Section 232 regime, which took effect Monday, now applies tariffs to the full customs value of covered steel, aluminum and copper products rather than only the value of the metal content.
• The framework sets tiers that include 50% on primary metal articles, 25% on many derivative goods, a temporary 15% rate on selected industrial and electrical-grid equipment through 2027, a 10% rate when qualifying U.S.-origin metal is used abroad, and an exemption when metal makes up 15% or less of a product’s weight.
• Coverage shifts remove some derivative tariff codes from Section 232 (Annex II), place many machines and equipment in a transitional bucket with reduced rates through December 31, 2027 (Annex III), and end the quarterly add-on process in favor of case-by-case additions by Commerce and USTR.
• Trade analysts say the broader tax base will push many invoices higher because duties now cover labor and fabrication built into finished goods, and a recent fastener-importer lawsuit over CBP’s prior full-value assessments highlights the compliance risks and the need for clear entry guidance.
• A separate proclamation targets certain patented pharmaceuticals with a default 100% duty starting July 31 and September 29, 2026, subject to company and country reductions and numerous exclusions, while generic and biosimilar drugs are not covered.