U.S. Section 232 Tariffs on Steel, Aluminum & Copper: 2026 Update for Mexico Manufacturers

On February 10, 2025, President Donald Trump signed a proclamation introducing significant changes to U.S. import tariffs on steel and aluminum products under Section 232 of the Trade Expansion Act of 1962. These changes have broad implications for global manufacturers, particularly those operating across the U.S.-Mexico-Canada (USMCA) trade corridor.

U.S. Section 232 Tariff Update Timeline:

• March 12, 2025: a 25% tariff was imposed on all steel and aluminum imports, eliminating prior country exemptions and replacing alternative tariff-rate quotas.
• June 4, 2025: tariffs were doubled to 50% on all covered imports, except for the United Kingdom, which temporarily remains at 25% pending negotiations on July 9th.
• June 23, 2025: tariff scope will expand to include major home appliances containing steel and aluminum--such as refrigerators, washing machines, and stoves--based on metal content.
• April 2, 2026: introduced a tiered rate system (50% / 25% / 15%) and brought copper fully into the Section 232 regime.
• June 1, 2026: tariff structure has been reshaped, product and metal coverage expanded, and a more refined rate system introduced.

These tariffs are now prioritized over other duties, meaning no "stacking" of additional import penalties like those under IEEPA or trade retaliation actions.

• No product exclusions will be granted—the Department of Commerce will no longer accept exclusion requests.
• Derivative products made from imported steel and aluminum will now be subject to tariffs, with further details to be published in the Federal Register.
• U.S. Customs and Border Protection (CBP) will increase enforcement, imposing maximum penalties for tariff evasion and misclassification.
• No duty drawbacks will be available for tariffs under the updated Section 232 policy.

Full text below.

What Tariffs were Announced?

February 10, 2025 - President Trump signed a proclamation making significant changes to import tariffs on steel and aluminum products under Section 232 of the Trade Expansion Act of 1962 .

Effective March 12, 2025, at 12:00 AM Eastern Time, a 25% tariff will be imposed on all steel and aluminum imports under Section 232. This proclamation revokes existing alternative tariff agreements with countries and regions including Argentina, Australia, Brazil, Canada, Mexico, the European Union, the United Kingdom, Japan, and South Korea. Steel and aluminum from these countries will be subject to the same 25% tariff.

As of June 4, 2025, the U.S. doubled its Steel and Aluminum Section 232 tariffs to 50% on all imports except those from the U.K., which temporarily remain at 25% pending trade negotiations that conclude by July 9. These tariffs apply strictly to the metal content of products. Additionally, effective June 23, broad new categories—ranging from refrigerators and stoves to washing machines—will fall under the same 50% tariff structure. Expect further shifts as the U.S. finalizes a quota‑based agreement with Mexico, and explores tariff-rate swaps with the EU and U.K.

June 1st, 2026 Proclamation, effective June 8, 2026, added USMCA content-based relief, a 10% rate for high U.S.-content articles, blended rates for trade-agreement partners, new covered products, and lowered the U.S.-content threshold to 85%.

Key Updates at a Glance [2026]

U.S. Section 232 tariff policy has evolved from a single 25% rate into a layered system. Based on Presidential Proclamation 11021 (April 2, 2026) and the proclamation of June 1, 2026 (effective June 8, 2026), the rate structure has been reshaped, product and metal coverage expanded, and content-based relief introduced. Here is what manufacturers in Mexico need to know.

• Tiered rates: Tariffs now follow a tiered structure: 50% on raw metal, 25% on derivatives, 15% on select equipment categories, and 10% for high U.S.-content articles.

• USMCA relief: For USMCA-qualifying goods from Mexico and Canada, the 25% duty applies only to the non-U.S. content of the product, subject to a 15% floor.
• Lower U.S.-content bar: The threshold to qualify as “entirely” U.S. metal dropped from 95% to 85% by weight, unlocking the 10% rate for more products.
• Expanded scope: Agricultural equipment and residential HVAC join the temporary 15% rate; aluminum lithographic plates and steel racks are newly covered.
• Sunset: Reduced equipment rates are temporary and expire December 31, 2027, reverting to Proclamation 11021 rates.

U.S. Section 232 Tariff Rate Structure [2026 Update]

The current tariff depends on what the product is, where its metal originates, and whether it qualifies under a trade agreement:

USMCA qualification is now more valuable than ever. Products that do not qualify for USMCA treatment face the full Section 232 rate with no content-based reduction.

Annex II: Excluded Products (no additional tariff)

This annex excludes certain products from the scope of Section 232 tariffs. The main excluded product categories are:

• Dairy products, chemicals and gases, paints and varnishes, cosmetics and personal care products, synthetic detergents and soaps, lubricating preparation
  
• Certain motorcycle parts (Chapters 84, 85, and 87) are also excluded, provided they are listed in Annex I-B and are imported exclusively for the manufacture of motorcycles.

Annex III: Temporary Relief for Derivatives (15% reduced rate until December 31, 2027)

Key product categories now subject to derivative tariffs include:

• Household appliances: refrigerators, freezers, washing machines, dryers, dishwashers, stoves, ovens, and food-waste disposals (added June 23, 2025 via Proclamation 10947).

• Agricultural equipment: combines and harvesters — now at the reduced 15% rate.
• Residential HVAC systems and components: now at the reduced 15% rate.
• Mobile industrial equipment: bulldozers and forklifts — 15% for imports from trade-agreement partner countries.
• Newly added under the June 2026 proclamation: aluminum lithographic plates and steel racks.
• Other metal-intensive products: where steel, aluminum, or copper accounts for more than 50% of the product’s material value, or a significant proportion by weight (the CBP test).

Derivative products made from steel or aluminum poured and cast in the U.S. remain exempt from derivative tariffs, provided U.S.-origin metal accounts for at least 85% of the product’s metal content by weight — reduced from the prior 95% threshold, making this exemption considerably more accessible.

Canada and Mexico: USMCA provides partial relief

Under the June 2026 Proclamation, for products from Canada and Mexico that qualify for USMCA preferential treatment, the 25% Section 232 duty applies only to the non-U.S. content portion of the product — calculated as total product value minus the value of U.S.-made parts. A 15% floor applies, meaning even a product with significant U.S. content will not pay less than 15% on the imported value.

Treat Country Rates

Beyond Canada and Mexico, the June 2026 Proclamation establishes special blended rates for products from other trade agreement partners: Argentina, Ecuador, El Salvador, Guatemala, Japan, South Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, and EU member nations.

For these countries, the Section 232 rate is determined by the product's HTSUS Column 1 standard duty rate:

• If Column 1 rate is below 15%: the combined rate (Column 1 + Section 232) equals 15%

• If Column 1 rate is 15% or above: no additional Section 232 duty applies

This is a significant benefit for manufacturers sourcing inputs from these countries.

Case Focus: Impact on Appliance Manufacturers in Mexico

For manufacturers of household appliances — particularly refrigerators, washing machines, dishwashers, dryers, and freezers — operating in Mexico and exporting to the U.S., the tariff environment has become considerably more complex.

The USMCA content calculation is critical

Whether your appliance qualifies for USMCA treatment, and how much of it qualifies as U.S. content, directly determines your tariff exposure. Taking a refrigerator as an example, under the current framework:

• If the metal used in the refrigerator is 85% or more U.S.-melted and formed by weight, the Section 232 U.S. metal rate of 10% applies.

• If the refrigerator qualifies for USMCA, the 25% Section 232 duty applies only to the non-U.S. content portion, with a 15% floor on the whole product.

• If the appliance does not qualify for USMCA, the full Section 232 derivative rate applies to the entire product.

Refrigerator Tariff Comparison by Country of Origin

*Section 122 surcharge shown as applicable through July 24. Rates are illustrative; consult a licensed customs broker for entry-specific calculations.

Most Affected Countries

Top Five Countries for U.S. Steel Imports (in metric tons) 

Top Five Countries for U.S. Aluminum Imports (in metric tons) 

Canada, the U.S.'s northern neighbor, will be the most affected. Canada is the largest source of U.S. steel imports, and nearly 50% of U.S. aluminum imports come from Canada. However, Canada is also the largest export market for U.S. steel and aluminum, followed closely by Mexico. Given the highly integrated supply chains within the USMCA region, manufacturing sectors, especially in the automotive industry, products can cross borders multiple times during production. Steel and aluminum are fundamental to many manufacturing products, so it's unsurprising that the U.S., Canada, and Mexico are each other's top import and export partners.

Considerations for Manufacturers

The Section 232 tariff program has evolved from a blunt instrument into a layered system where the origin of metal inputs, USMCA qualification status, treaty country of supply, and the share of U.S.-origin content all determine your actual tariff burden. For manufacturers operating in Mexico, this means:

1. Audit your steel and aluminum supply chainby input origin, not just finished goods origin.

2. Maximize USMCA qualification — it is now one of the most valuable levers for managing Section 232 exposure.

3. Evaluate U.S.-sourced metal inputs — reaching the 85% U.S.-content threshold unlocks the 10% rate.
4. Review your HTS classifications — CBP continues to enforce maximum penalties for misclassification under these proclamations.
5. Plan around the December 2027 sunset — current reduced rates on equipment categories are temporary.

If your supply chain may be affected by these changes or if you have questions about product classification, USMCA eligibility, or IMMEX implications, please contact our experts.

Key Dates to Track:

Sources: White House Proclamation of June 1, 2026; White House Fact Sheet of June 1, 2026; Proclamation 11021 of April 2, 2026; Proclamation 10962 of July 30, 2025; Proclamation 10947 of June 23, 2025.

Frequently Asked Questions:

What are the current U.S. Section 232 tariff rates in 2026?

As of the June 2026 proclamation, Section 232 uses a tiered structure: 50% on raw steel, aluminum, and copper articles; 25% on derivative products predominantly made of these metals; 15% on a temporary list of equipment categories (agricultural equipment, residential HVAC, and mobile industrial equipment from trade-agreement countries); and 10% on derivative articles whose metal content is at least 85% U.S.-origin.

When does the June 2026 Section 232 proclamation take effect?

The proclamation was signed on June 1, 2026, and takes effect for goods entered for consumption on or after 12:01 a.m. EDT on June 8, 2026. The temporary reduced rates run through December 31, 2027.

How are Section 232 tariffs applied to products from Mexico under USMCA?

For products from Mexico (and Canada) that qualify for USMCA preferential treatment, the 25% Section 232 duty applies only to the non-U.S. content of the product — total product value minus the value of U.S.-made parts. A 15% floor applies, so the effective duty on the imported value is never less than 15%. Products that do not qualify for USMCA face the full rate with no content-based reduction.

What U.S.-content threshold unlocks the 10% Section 232 rate?

A derivative article qualifies for the 10% rate when its metal content is composed entirely of U.S. metal — defined as aluminum smelted and cast, or steel melted and poured, in the United States accounting for at least 85% of the metal by weight. The June 2026 proclamation lowered this threshold from 95% to 85%, making the lower rate accessible to more products.

Are appliances made in Mexico subject to Section 232 tariffs?

Yes. Household appliances such as refrigerators, washing machines, dryers, dishwashers, and freezers are covered as derivative products. The rate depends on USMCA qualification and U.S.-metal content: 10% if metal is 85%+ U.S.-origin, 25% on non-U.S. content (15% floor) if the appliance qualifies under USMCA, or the full derivative rate if it does not qualify.

Which products received the reduced 15% Section 232 rate?

The temporary 15% rate covers agricultural equipment, residential HVAC systems and components, and mobile industrial equipment (such as bulldozers and forklifts) from trade-agreement partner countries, along with fixed industrial machinery and power equipment. This relief expires December 31, 2027.

What new products were added to Section 232 coverage in June 2026?

The June 2026 proclamation added aluminum lithographic plates and steel racks to the list of covered derivative products, ensuring they are subject to the applicable derivative tariff and preventing circumvention.

How are Section 232 rates set for other trade-agreement countries?

For Argentina, Ecuador, El Salvador, Guatemala, Japan, South Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, and EU member nations, the rate is based on the product’s HTSUS Column 1 duty rate. If the Column 1 rate is below 15%, the combined rate equals 15%; if it is 15% or higher, no additional Section 232 duty applies.

We intend to keep this blog updated as a reference guide for Mexican manufacturers, but specific consultations or doubts should be directed toward one of our professionals.