Trump Administration Increases Section 232 Tariffs on Steel and Aluminum, Establishes Inclusion Process
The Trump Administration recently took two major steps as to tariffs on steel and aluminum and their derivative products. First, on May 1, 2025, the Commerce Department announced the issuance of an interim final rule (“IFR”) establishing a new tariff inclusion process for derivative aluminum and steel articles subject to Section 232 tariffs (the “steel and aluminum tariffs”).1 Second, on June 3, 2025, President Donald Trump increased the tariff rate for imports of steel and aluminum and their derivatives from 25 to 50 percent ad valorem.2 The increased 50 percent tariff rate on imports of steel and aluminum articles and their derivatives went into effect at 12:01 a.m. ET on June 4, 2025.
The IFR establishes a process for US companies to request certain derivative aluminum and steel articles be included within the scope of the steel and aluminum tariffs. Inclusion requests must be submitted to the Commerce Department’s Bureau of Industry and Security (“BIS”) in PDF format via the Defense Industrial Base Programs inbox at DIBPrograms@bis.doc.gov. They cannot exceed 30 pages and should include the following information:
- Clear identification of the applicant (i.e., individual, company, or trade association);
- A precise definition of the derivative article;
- The eight- or ten-digit HTSUS classification requested to be included in the scope of the ad valorem tariffs;
- An explanation as to why the article is a steel or aluminum derivative article, including, to the extent practicable, information on the total value of the article’s steel and/or aluminum content as a share of the derivative article’s total value;
- Pertinent information on the domestic industry affected;
- Statistics on imports and domestic production;
- A description of how, and to what extent, imports of the derivative article threaten to impair the national security or otherwise undermine the objectives set forth in the 2018 Steel and Aluminum Section 232 investigation reports or related inclusions proclamations; and
- Any business confidential submissions must also include a non-confidential public version.
The IFS established three two-week windows per year during which parties may submit their inclusion applications: the first two weeks of May, September, and January. The first window opened on May 1, 2025. The IFR was effective on April 30. BIS also requested comments on the IFR, which were due on June 16.
Similar to the now-retired Section 232 exclusion process, upon receiving an inclusion request, BIS will publicly post non-confidential versions of all valid requests for a 14-day public comment window following the conclusion of the original two-week submission window. Following a review of such comments, BIS will then post a determination memorandum which will detail whether the inclusion request was approved or denied and explain the rationale for making such determination.
Finally, the IFR also officially ends the aluminum and steel exclusion process authorized in 2018 under the first Trump Administration. These exclusions were revoked by President Trump on February 10.
Tariffs remain dynamic under the Trump Administration. Interested parties in tariffs and/or imports of steel or aluminum articles and/or their derivatives into the United States should continue to monitor updates from the administration.
1 These tariffs follow two February 10, 2025 proclamations issued by President Trump pursuant to Section 232 of the Trade Expansion Act of 1962. Read more in our Legal Update on these proclamations.
2 Steel and aluminum articles and their derivatives from the United Kingdom are currently exempt from this increase and remain subject to a 25 percent ad valorem tariff.
