Steel & Aluminum Tariffs 2026: 50% Rates by Country and What It Costs You
On June 4, 2025, Section 232 tariffs on steel and aluminum doubled from 25% to 50%. This was the largest single tariff escalation of the 2025 cycle and continues to shape construction, automotive, appliance, packaging, and energy infrastructure costs through 2026. This guide breaks down the current rates by country, what's exempted, downstream products affected, and the math for importers.
The headline rates
| Product | Section 232 rate | Effective since |
|---|---|---|
| Steel (most categories) | 50% | June 4, 2025 |
| Aluminum (most categories) | 50% | June 4, 2025 |
| Steel derivative products | 50% | 2025 expansion |
| Aluminum derivative products | 50% | 2025 expansion |
For full Trump-era context see our Trump Tariffs 2026 guide and Section 232 deep dive.
Country-by-country exposure
| Country | Steel | Aluminum | Notes |
|---|---|---|---|
| China | 50% | 50% | Plus Section 301 25% layer |
| Mexico | 50% | 50% | No USMCA carve-out for metals |
| Canada | 50% | 50% | Largest US foreign source; biggest impact |
| European Union | 50% | 50% | TRQ being negotiated |
| South Korea | Quota | 50% | Steel under TRQ from 2018 deal |
| Brazil | Quota | 50% | Steel quota from 2018 |
| Argentina | Quota | Quota | Both under quota |
| United Kingdom | 50% | 0% (exempted) | Negotiated aluminum exemption |
| Japan | 50% | 50% | Pre-existing quotas eliminated |
| India | 50% | 50% | Section 232 + reciprocal layers |
What counts as "steel" and "aluminum" for tariff purposes
Section 232 covers a broad list of HS codes. For steel:
- Chapter 72 (iron and steel) — bars, rods, sheets, coils, tubes
- Chapter 73 selected (steel products) — pipes, tubes, structural shapes
- Steel derivative products (2025 expansion) — nails, screws, cans, structural steel
For aluminum:
- Chapter 76 — unwrought, wrought, sheets, foil, plates
- Aluminum derivative products (2025 expansion) — cans, household goods, electrical conductors
Find your specific HTS code to confirm scope.
Downstream products affected
The 50% rate cascades into many products that use steel or aluminum:
| Product | Cost impact (estimated) |
|---|---|
| New construction (steel-frame buildings) | +$2-$5 per sq ft |
| Major appliances (refrigerators, washers) | +$50-$150 per unit |
| Aluminum cans (beverages) | +$0.01-$0.02 per can at retail |
| Automotive (steel + aluminum in vehicles) | +$400-$900 per vehicle |
| Tools, fasteners, hardware | +15-25% wholesale |
| Solar panel mounting systems (aluminum) | +10-18% installed |
How importers are adapting
- Verifying USMCA on derivative products. Some downstream steel/aluminum products still qualify under USMCA, reducing IEEPA exposure even though Section 232 stays.
- Switching to UK aluminum. The UK aluminum exemption has made British sources competitive despite higher base prices.
- Stockpiling before further increases. Industries expect potential further escalation if WTO disputes fail.
- Domestic sourcing. US Steel and Alcoa have benefited; new US capacity is being built in 2026.
- Filing for product exclusions. Commerce Department exclusion process exists but is competitive and slow.
Real cost example: 20-ton shipment of aluminum sheet from China
| Line item | Amount |
|---|---|
| Goods value (20 tons × $3,200/ton) | $64,000 |
| Base MFN duty (aluminum sheet, ~3%) | $1,920 |
| Section 232 (50%) | $32,000 |
| Section 301 China (25%) | $16,000 |
| MPF (capped) | $634.62 |
| HMF (sea) | $80 |
| Total duty + fees | $50,634.62 |
| Reciprocal baseline (does not stack on metals) | $0 |
| Effective rate on goods | ~79% |
For the same shipment from the UK (aluminum exempt) the rate would be just the 3% base MFN. The country-of-origin choice is now worth tens of thousands per shipment.
The exclusion process
Importers can request product-specific exclusions through the Commerce Department's exclusion portal. Requirements:
- Demonstrate the specific product is not available from US producers in sufficient quality, quantity, or timeliness
- Provide technical specifications
- Show no US producer objects (or address the objection)
- Wait 3-6 months for decision
Exclusion approval rates are roughly 20-40%, mostly favoring specialized grades. Commodity steel and aluminum almost never get excluded.
What's next in 2026
- EU TRQ negotiation — possible deal converting 50% to quota system
- Korea/Japan revisions — pressure to align with new tariff structure
- Copper Section 232 — pending action could add copper to the tariff list
- Court ruling impact — if IEEPA falls, Section 232 metals remain (different legal basis)
Frequently asked questions
What is the current Section 232 tariff on steel and aluminum?
50% on both, applied to most foreign sources since June 2025. Selected countries have negotiated reductions or quotas; the UK has aluminum exemption.
Does USMCA waive the steel/aluminum tariff?
No. Section 232 on steel and aluminum applies regardless of USMCA qualification. Only product-specific exclusions or country deals waive it.
Can I get an exclusion?
You can request one through the Commerce Department exclusion process. Approval rates are 20-40%, mostly for specialized grades. Takes 3-6 months.
What countries are exempted?
UK has aluminum exemption. Brazil, Argentina, South Korea have steel quotas instead of tariffs. Most other countries pay the full 50%.
How does this affect downstream products?
Cans, appliances, vehicles, construction materials, and many other goods see cost increases. Section 232 also applies to derivative products explicitly.
Should I switch to domestic sourcing?
Depends on price and availability. US capacity has expanded but not fully replaced foreign supply. Many importers blend domestic + UK + Canadian (where USMCA-qualifying for downstream).