Glossary
What is Section 232 tariffs?
Section 232 tariffs are US import duties imposed on national security grounds under Section 232 of the Trade Expansion Act of 1962. The best-known measures cover steel and aluminium, and extend to products made from them. |
The national security test
The Commerce Department investigates whether imports of a product threaten to impair national security and reports to the President, who decides what action to take. The logic is domestic industrial capacity whether the United States can still make something it might need rather than the conduct of any one trading partner.
Section 232 or Section 301?
- Section 232 rests on national security, is product-based, and applies regardless of source country unless a specific exemption exists.
- Section 301 rests on unfair trade practices and targets a particular country’s conduct.
- Both stack on the standard HTS duty, and a single consignment can attract both at once.
Derivative products catch importers out
Section 232 coverage has been extended beyond raw metal to derivative articles containing steel or aluminium, so a finished product can attract duty on its metal content alone. Importers who checked only the primary lists and assumed a manufactured good was outside scope are the ones who get caught.
iCustoms flags stacked US measures against your commodity codes before the entry is filed. |
