What Changed
Effective June 1, 2018Temporary exemptions from Section 232 steel and aluminum tariffs for the European Union, Canada, and Mexico expired on June 1, 2018, bringing these major trading partners under the full 25% steel and 10% aluminum tariff rates. The exemptions had been in place since Section 232 was enacted on March 23, 2018. All three parties retaliated immediately — the EU imposed countermeasures on US goods including bourbon, Harley-Davidson motorcycles, and agricultural products.
Rate Changes
| Item | Before | After |
|---|---|---|
| EU steel imports (S232) | Temporarily exempt | 25% S232 |
| EU aluminum imports (S232) | Temporarily exempt | 10% S232 |
| Canada steel/aluminum (S232) | Temporarily exempt | 25% / 10% S232 |
| Mexico steel/aluminum (S232) | Temporarily exempt | 25% / 10% S232 |
Who's Affected
US importers of steel and aluminum from the EU, Canada, and Mexico — historically the largest sources of these metals for US manufacturers. The loss of exemptions also hurt US exporters as retaliatory tariffs were imposed by all three trading partners. Canada and Mexico later regained preferential access for USMCA-qualifying goods, but EU exemptions remained contested through 2026.
Analysis
Section 232 Exemptions Expire for EU, Canada, and Mexico (effective 2018-06-01). Temporary exemptions from Section 232 steel and aluminum tariffs for the European Union, Canada, and Mexico expired on June 1, 2018, bringing these major trading partners under the full 25% steel and 10% aluminum tariff rates. Section 232 of the Trade Expansion Act of 1962 authorizes the President to impose tariffs or quotas on imports when the Department of Commerce determines that the import levels threaten to impair national security. The statute provides broad executive authority and has been used extensively since 2018 to cover steel and aluminum, with subsequent expansions to copper, automobiles, lumber, and semiconductors. Section 232 tariffs are notably permanent in character — unlike Section 122, they carry no statutory expiration and can remain in effect indefinitely once imposed. Products covered by Section 232 are exempt from the Section 122 surcharge under the February 2026 proclamation, meaning importers of S232-covered goods do not face double-stacking of these two tariff authorities. However, S232 rates do stack on top of MFN base rates, and China-origin products that fall under Section 301 may face additional tariff layers on top of S232. The expansion of Section 232 to cover copper in March 2025 and semiconductors in January 2026 reflects a broader industrial policy strategy to protect domestic manufacturing capacity in strategic sectors. Importers of S232-covered products should verify the exact HTS classification of their goods and confirm whether any country-specific exemptions or quotas apply to their sourcing country.
Impact & Next Steps
Manufacturers and importers of S232-covered products should work with licensed customs brokers to verify HTS classifications and ensure correct duty application. Country-of-origin documentation is critical: the S232 tariffs apply to the country where the product was substantially transformed, not simply where it was last shipped from. Some S232-covered products have product-exclusion processes through the Department of Commerce; check current exclusion orders before assuming the full rate applies to your specific product.