Increased Tariffs On Steel, Aluminum Imports Into United States Are Now In Effect

As previewed in last week’s Connecting the Dots, President Donald Trump did move forward with a doubling of Section 232 tariffs on steel and aluminum product imports into the United States. The increased penalties went into effect last Wednesday, June 4. They apply to imports from all countries except the United Kingdom (U.K.). Tariffs for U.K. products will remain at 25 percent — though White House officials said that could change as early as July 9 “depending on the status” of the draft trade agreement between the United States and United Kingdom.

As reminder, when it comes to Section 232 tariffs on steel and aluminum imports into the United States, Connecting the Dots reports information for MSCI members’ benefit only. Please refer to this June 2025 blog post by MSCI President and CEO Bob Weidner for MSCI’s position on these tariffs, the organization’s principles when it comes to free and fair trade, and resources for members to stay on top of the latest news and analysis related to trade policy.

In its tariff proclamation, the White House noted the Trump administration also “is cracking down on false import declarations by requiring strict reporting of steel and aluminum content, with tough penalties like fines or loss of import rights for violators.”

Additionally, President Trump revised the order in which tariffs may be “stacked” when an imported article is subject to more than one tariff. As one law firm explained:

• Articles subject to Section 232 tariffs on imports of steel or aluminum and derivative articles are not subject to International Emergency Economic Powers Act (IEEPA) tariffs on Canada and Mexico;
• Articles subject to Section 232 tariffs on automobiles and auto parts are not subject Section 232 tariffs on imports of steel, aluminum, and derivative articles, or to the tariffs on imports from Canada and Mexico imposed under the IEEPA;
• For derivative products subject to both the aluminum and steel tariffs, duties are owed on both the value of the aluminum and steel content of the product;
• Aluminum and aluminum derivative products from Russia, and aluminum products from any country containing aluminum smelt or cast in Russia, are subject to the corresponding Section 232 duty rate of 200 percent; and
• Articles that qualify for preferential tariff treatment under the United States, Mexico, Canada Agreement are not subject to the IEEPA Canada or IEEPA Mexico tariffs.

Finally, the proclamation limits the option to avoid higher 50 percent tariff by using a foreign-trade zone. Read more at this link. The White House’s fact sheet is available at this link.

According to The Wall Street Journal, the increase in the Section 232 steel and aluminum tariff rates could be subject to a legal challenge. “[President] Trump piggybacked on the findings of a national-security investigation by the Commerce Department in 2018,” The Journal explained. “The question now is whether the findings were too stale to be the basis for a new tariff hike, and thus whether Trump should have sought a new national-security investigation first.”