On April 3, 2026, President Trump signed a proclamation changing how US Section 232 tariffs on steel, aluminium, and copper are calculated. Effective April 6, 2026, your tariff rate now depends on how much metal is in your product.
The New Tariff Structure
Product Type | Metal Content | Tariff Rate |
|---|---|---|
Pure metal products (coils, sheets) | 100% or almost entirely metal | 50% |
Derivative products (parts, components) | Substantially made of metal | 25% |
Industrial/grid equipment | Metal-intensive | 15% (through 2027) |
Products with US-sourced metal | Made entirely with US steel/aluminium/copper | 10% |
Low metal content | 15% or less metal | 0% (exempt) |
This is live right now. If you shipped to the US on April 5, you paid the old rate. If you ship on April 7, you pay the new rate.
What Changed for Indian Exporters
Before April 6:
All steel/aluminium/copper products: flat 50% tariff
Derivative products: same 50%
After April 6:
Pure metal: still 50%
Derivatives (auto components, machinery parts): dropped to 25%
Products with ≤15% metal content: now exempt entirely
Critical detail: The Feb 2026 India-US interim agreement already brought general tariffs down from 50% to 18%. But Section 232 metal tariffs were separate. This April proclamation affects only metal-specific products, not textiles, leather, or other non-metal exports.
Who Wins, Who Loses
Winners:
Auto component manufacturers (engine parts, transmission components), tariff drops from 50% to 25%
Machinery exporters with mixed materials, if the metal content is ≤15%, you're now exempt
Manufacturers using US-sourced steel/aluminium, 10% tariff vs 25-50%
Losers:
Pure steel/aluminium/copper exporters, still 50%, no relief
Companies that can't document the metal content percentage default to a higher rate
Unchanged:
UK gets preferential rates (25% for pure metal, 15% for derivatives)
EU, Japan, and South Korea agreements remain intact
The Compliance Trap
You now need to document and prove the metal content percentage for every shipment. US Customs will ask:
What % of the product is steel/aluminium/copper by value?
Is the metal US-sourced or imported?
Does the product qualify as "derivative" or "pure metal"?
If you can't prove it, Customs defaults you to the higher rate.
If you export metal products or metal-heavy components to the US, the tariff you pay changed on April 6.
Check your product classifications. Update your documentation. Recalculate your pricing. The window to capture new orders at the lower 25% rate is open now, before your competitors adjust their quotes.