Trump steel and aluminum tariffs: What you need to know

Updated on Wednesday, March 12, 2025, at 4:45 p.m. ET. We’re updating this blog post as new information becomes available.

On February 10, 2025, President Donald J. Trump issued a proclamation reinstating a 25% tariff on steel and certain steel derivatives. The proclamation also increases tariffs on aluminum from 10% to 25% and eliminates all country-specific alternative agreements and exemptions. The new tariffs took effect March 12, 2025.

These tariffs are likely to impact the following U.S. trading partners most because they are currently exempt from steel and aluminum tariffs:

• Argentina
• Australia
• Brazil
• Canada
• European Union
• Japan
• Mexico
• South Korea
• Ukraine
• United Kingdom

Canada, Brazil, Mexico, South Korea, and Japan are top U.S. steel suppliers. Canada is also the top supplier of aluminum. 

President Trump invoked Section 232 of the Trade Expansion Act of 1962 to implement the new aluminum and steel tariffs. Section 232 applies to imports that could impair national security. According to the White House, the tariffs are needed to improve the nation’s ability to meet demand for national defense and critical infrastructure. 

Additional details were set forth in the proclamation and a fact sheet dated February 11. There are also Federal Register notices on the steel and aluminum tariffs, and U.S. Customs and Border Protection (CBP) is providing ongoing guidance via its Cargo Systems Messaging Service.

Here’s what we know as of the date and time of publication.

New 25% tariffs on imports of steel and certain steel derivatives took effect at 12:01 a.m. ET on March 12, 2025. 

The tariffs apply to steel imported from Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, Ukraine, the EU, and the U.K. Previously agreed exemptions, quotas, and other agreements with these countries are eliminated. 

Section 232 tariffs will apply to the steel derivative items listed in Chapter 73. More information is available in the Federal Register notice. 

Steel derivative articles processed in another country from steel articles melted and poured in the U.S. are not subject to the 25% tariff.

The February 10 proclamation also increased and broadened tariffs on aluminum and aluminum derivatives effective 12:01 a.m. ET on March 12, 2025.

For most countries, the aluminum tariff increased from 10% to 25%.

For the following trading partners, aluminum tariffs jumped from 0% to 25%: Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, Ukraine, the EU, and the U.K. As with steel, previously agreed exemptions, quotas, and other agreements with these countries are eliminated.

According to the Federal Register notice, the 25% tariffs will apply to aluminum derivative items listed in Chapter 76 unless their aluminum content was smelted and cast in the U.S. 

Duty drawbacks allow companies to reclaim tariffs paid on exported finished products. Under the proclamation of February 10, 2025, no duty drawbacks are available with respect to the new duties on steel and aluminum.

Steel and aluminum articles or derivatives that are subject to the 25% duty may be admitted into a U.S. Foreign Trade Zone (FTZ) only under “privileged foreign status.” They’ll be subject to the 25% duties unless designated as “domestic status” as defined in 19 CFR 146.43. See the Federal Register notices for more details.

The U.S. Department of Commerce terminated the product exclusion process as of 11:59 p.m. ET on February 10, 2025, the day President Trump announced the new tariffs. This is a new policy.

Under Proclamations 9704 and 9705 (2018), the Secretary of Commerce could provide relief from additional duties based on a request for exclusion from “a directly affected party located in the United States.”

Per CBP, all general approved exclusions (GAEs) for aluminum and aluminum derivative products and steel and steel derivative products expired on March 11, 2025; products became subject to 25% ad valorem duties on March 12, 2025.

However, previously granted product exclusions will remain effective “until their expiration date or until excluded product volume is imported, whichever occurs first.”

The Secretary of Commerce will establish a process for expanding the 25% tariffs to additional derivative steel articles and additional aluminum derivative articles within 90 days of the February 10 proclamation. 

At that point, producers or industry associations may request to add products to the list of derivatives subject to the tariffs. A response should be provided within 60 days.

Retaliatory tariffs are happening. 

On February 11, Prime Minister Justin Trudeau of Canada promised a “firm and clear” response to the “entirely unjustified” steel and aluminum tariffs.

On February 13, the European Commission said it will react “firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies.”

If other countries do raise tariffs on U.S. imports, Trump will likely retaliate with yet more tariffs. On March 11, he threatened to increase the new tariffs on steel and aluminum from 25% to 50% in response to Canada’s retaliatory tariffs.

Trump could set tariffs on more products even if other countries don’t impose tariffs on the U.S.  

On February 13, Trump issued a Presidential Memorandum ordering the development of a “Fair and Reciprocal Plan” to “correct longstanding imbalances in international trade.” 

The memorandum called out some of the “endless examples where our trading partners do not give the United States reciprocal treatment,” including agricultural goods (India), cars (the EU), ethanol (Brazil), motorcycles (India), and shellfish (the EU).

On March 11, the European Commission announced a “swift and proportionate response” to the new U.S. tariffs on imports of steel, aluminum, and certain products containing steel and aluminum. It will automatically reinstate tariffs on a range of U.S. products, including boats, bourbon, and motorcycles, starting April 1, 2025.

These are uncertain times. But whatever happens with international trade and tariffs, businesses need to be prepared. 

The most effective way for businesses to prepare for tariff changes, whatever they end up being, is to automate customs duty compliance.

Avalara Cross-Border automates tariff code classification and delivers real-time calculation of customs duty and import taxes. “We monitor and respond quickly to regulatory changes worldwide,” says Shane Bogdan, Director of Cross-Border Sales at Avalara, “helping to ensure our customers remain in compliance.”

Let Avalara help you stay ahead of global tax changes. Contact us today to learn more.

For more information about the changing tariff landscape, check out:

• How to prepare for Trump tariffs
• What you need to know about the US-Canada trade war
• How to handle U.S.-China tariffs and the eventual end of de minimis
• De minimis exemption changes are coming: Is your business ready?

This post was originally published on February 14, 2025.