The US Changed the Rules. Today.
Effective April 6, 2026, the US scrapped its single 50% Section 232 metals tariff. It's now four tiers - duty assessed on full product value, not just metal content. That one change makes the "lower rate" on finished goods more expensive than it appears.
What's Changing
What You're Exporting | Old Rate | New Rate | Assessed On |
|---|---|---|---|
Raw steel, aluminium, copper | 50% on metal content | 50% | Full product value |
Finished parts, machinery, electrical, and construction | 50% on metal content | 25% | Full product value |
Select derivative products | 50% on metal content | Min. 15% | Full product value |
144 product categories | In scope | 0% | Removed entirely |
The Catch
A finished component with 30% metal content is used to pay 50% on that 30%. Now it pays 25% on 100% of the value. 326 downstream products worth $227 billion moved from 50% on metal content to 25% on full product value. Run your own numbers before assuming this is good news.
One real exemption: products where metal content is under 15% of total weight are fully exempt.
What This Means for Exporters
Whether you're shipping from India, the GCC, Southeast Asia, or Europe, the landed cost calculation has changed. The headline rate looks lower on finished goods. The base it's applied to is now larger. For high-value finished components, the actual duty paid could be higher than before.
For raw metal exporters - steel, aluminium, copper - nothing changes. 50% on full value, same as before. One more thing: Seven product categories entered the Section 232 scope for the first time under this proclamation. Your product may now be in scope when it wasn't last month. Check the update list.