2026 US Steel & Aluminum Tariffs: A Buyer’s Guide for Metal Fabrication
In 2026, the US government reworked the Section 232 tariff framework for steel, aluminum, and copper twice — on April 6 and again on June 8. The most consequential change: the duties now hit the full value of the finished part, not just the metal content. If you buy stamped, machined, or fabricated metal components from China, Mexico, Canada, the EU, or anywhere else, your landed cost math changed. This guide explains the current rules, walks through a worked cost example, and lists five actions you can take before your next RFQ.
What Changed in 2026: Two Actions, Two Dates
First, on April 6, 2026, Proclamation 11021 moved the entire framework to a full-customs-value basis and restructured the rate ladder. Then, on June 8, 2026, Proclamation 11032 reorganized the covered product lists and added partner-specific rates. The table below summarizes both actions.
| Effective date | Action | Key changes |
|---|---|---|
| April 6, 2026 | Proclamation 11021 | Duties apply to the full customs value of the imported article. 50% on steel, aluminum, and copper articles. 25% on “derivative articles” that are predominantly composed of those metals. A temporarily reduced 15% rate for fixed industrial machinery and power equipment (through Dec 31, 2027). 10% for derivatives containing 95% US-sourced metal; end of the derivative “inclusions” process |
| June 8, 2026 | Proclamation 11032 | Covered articles regrouped into Annexes I-A through I-C; Annex I-C articles carry a 25% base rate with partner-specific reductions (see rate table below). The “made entirely of US metal” threshold dropped from 95% to 85% by metal weight. Agricultural equipment and certain residential HVAC added to the 15% reduced-rate category; aluminum lithographic plates and steel racks added to scope; rates revert to the April structure on January 1, 2028 |
Note one important tie-breaker: when a product falls under multiple rates, the lowest applicable rate governs.
How the Tariffs Apply to Fabricated Parts: The “Derivative Article” Rule
Before April 2026, Section 232 mostly taxed the metal content value of a part. After April 6, 2026, it taxes the full value of the article as imported — meaning your machining hours, assembly, and processing are all inside the duty base now. In practical terms, a precision-machined bracket pays a higher duty than the same steel at sheet stage, even though both come from the same country.
The classification language matters here. Raw and semi-finished products (plate, sheet, bar) are “metal articles.” A finished bracket, enclosure, chassis, or structural subassembly is a “derivative article” — a manufactured product predominantly composed of covered metals. Both categories fall inside the framework, but they sit in different rate buckets. For lookup purposes, steel products cluster in HTS chapters 72 and 73, aluminum in chapter 76. The April 2026 action covers chapter 72 and most goods in chapters 73, 74, and 76. Two exclusion rules worth knowing: goods already subject to the Section 232 automotive tariffs are exempt from the steel/aluminum tariffs, and the temporary global 10% duty under Section 122 does not apply to Section 232-covered products.
Current Rates by Origin (June 8, 2026 – December 31, 2027)
For Annex I-C articles, the June 2026 proclamation sets a 25% base additional duty, with specific partners on lower or capped treatment. The table below shows the additional Section 232 rate you should plan around, on top of normal MFN (Column 1) duties.
| Origin of the part | Section 232 additional duty (Annex I-C articles) |
|---|---|
| EU, UK, Japan, South Korea, Switzerland, Liechtenstein, Taiwan, Argentina, Ecuador, El Salvador, Guatemala | Capped at 15% total: if the product’s Column 1 duty is below 15%, the combined Column 1 + Section 232 rate equals 15%. If Column 1 is already 15% or higher, the additional Section 232 duty is zero |
| China and other origins without a special rate | 25% (stacks with MFN and, for China, Section 301 duties) |
| Canada / Mexico, USMCA-qualifying | 25% on the non-US content of the product only, with a 15% floor on total effective duty |
| Derivative articles made of 100% US smelted-and-cast aluminum or US melted-and-poured steel (85%+ by metal weight now qualifies as “entirely” US) | 10%, calculated with the same Column 1 methodology as the partner row above |
In addition, the temporarily reduced 15% category (fixed industrial machinery and power equipment, plus agricultural equipment and certain residential HVAC systems) runs through December 31, 2027, and mobile industrial equipment and machinery received its own temporary modification. From January 1, 2028, Annex I-C rates revert to the April framework — 50% on articles and 25% on derivatives — so any rate advantage your current origin mix enjoys has a sunset date.
A Worked Landed-Cost Example
For example, consider a $10,000 order of stamped steel brackets (think HTS 7320/7326-class items — verify your exact 10-digit code), origin China. Assume a 0% Column 1 base duty, which applies to many sheet-metal fabrications. If the item sits in Annex I-C, the Section 232 additional duty adds $2,500. If it sits in Annex I-A or I-B instead, the April 50% full-value rate adds $5,000. On top of that, Section 301 duties on China-origin goods still apply and stack with Section 232 — and USTR’s July 24, 2026 action added forced-labor-related Section 301 duties of 10% or 12.5% on covered goods from 60 economies that have adopted forced-labor import prohibitions. As a result, the all-in tariff exposure on that one $10,000 order can swing from roughly $2,500 to well above $7,500 depending on classification alone.
Now compare the same part sourced from an EU supplier: the combined Column 1 + Section 232 treatment caps at 15%, or $1,500 on the same order. That gap — not the ex-works price difference — is what the 2026 changes most directly reward or punish. These figures are illustrative; your actual rates require 10-digit HTS verification, as the next section explains.
Five Actions for Metal Fabrication Buyers
- Re-verify classification and annex. Confirm your part’s 10-digit HTS code and check which annex (I-A, I-B, or I-C) of Proclamation 11021, as modified by Proclamation 11032, lists it. CBP guidance and the USITC HTS lookup are the authoritative tools, and your broker should run this before any price negotiation.
- Collect material-origin documentation. Ask your supplier for the country of smelting/casting, the share of US-sourced metal (if any), and a certificate of origin. Because the June 2026 rules key several preferential treatments to metal origin — not just assembly location — this paperwork now directly changes your duty.
- Recalculate landed cost on the full-value base. The duty base is the finished part, not the metal. Re-run your cost model at 10-digit level before you accept a quote, and keep the tariff line separate from the unit price in your comparison sheets.
- Re-evaluate your supplier mix. EU, UK, Japanese, Korean, Swiss, Liechtenstein, Taiwanese, and several Central American origins now face a 15% cap through 2027. The USMCA corridor applies 25% to non-US content only, with a 15% floor — which favors parts that genuinely incorporate US material.
- Track the three moving parts. First, the USMCA review: at the July 2026 scheduled review, the US administration declined to extend the agreement in its current form, so the Mexico/Canada treatment above could shift. Second, in August 2026 Commerce opened a comment process on adding more derivative products to scope. Third, the January 1, 2028 sunset reverts Annex I-C to the 50%/25% structure.
Frequently Asked Questions
Do Section 232 tariffs apply to fabricated metal parts, or only to raw steel and aluminum?
Both. The framework covers metal articles and derivative articles — manufactured products predominantly composed of covered metals. Finished brackets, enclosures, chassis, and structural subassemblies are derivative articles.
Is the duty calculated on metal content or on the full part value?
Since April 6, 2026 (Proclamation 11021), on the full customs value of the imported article. Before that date, most derivatives were taxed on metal content only.
Do parts from the EU, Japan, South Korea, or the UK face a lower rate?
Yes, through December 31, 2027. For Annex I-C articles from those partners — plus Switzerland, Liechtenstein, Taiwan, Argentina, Ecuador, El Salvador, and Guatemala — the combined Column 1 + Section 232 rate is capped at 15%.
What changed for Mexico and Canada under USMCA?
USMCA-qualifying products pay 25% on non-US content only, with a 15% floor on total effective duty. However, at the July 2026 USMCA review the US administration declined to extend the agreement in its current form, so this corridor warrants monitoring.
How do these tariffs interact with Section 301 duties on China?
They stack. Section 232 applies in addition to MFN (Column 1) duties, trade remedies, and Section 301 rates. In addition, USTR’s July 24, 2026 action imposed forced-labor-related Section 301 duties of 10% or 12.5% on covered goods from 60 economies that have adopted forced-labor import prohibitions.
Will the rates change again?
Two scheduled changes are known. The reduced-rate categories run through December 31, 2027, and from January 1, 2028 Annex I-C reverts to the April framework (50% on articles, 25% on derivatives). Beyond that, Commerce’s August 2026 scope-comment process and the ongoing USMCA review could add further movement.
Sources
- Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper into the United States (Proclamation, June 1, 2026)
- CRS In Focus IN12519: Section 232 Tariffs on Steel and Aluminum (Library of Congress, updated 2026)
- Notice of Actions in Section 301 Investigations (Federal Register, July 28, 2026)
- Harmonized Tariff Schedule of the United States (HTSUS) (USITC, 10-digit lookup)
Talk to Us Before You Quote
When you send us a drawing, we can flag the likely HTS classification and the current tariff exposure for your origin mix, so your landed-cost math starts from real numbers. Request a quote — or start with our metal fabrication glossary and tolerance standards to line up spec language first. Shipping and lead-time questions are covered in our shipping and delivery guide, and our project cases show the part families we quote most often.
