Steel coils loaded on a container at a ship port, ready for shipping and transportation

Are You Overpaying? New 50% Tariffs on Steel and Aluminum Require Strategic Documentation

As of June 4, 2025, the U.S. government implemented a 50% tariff on specific steel and aluminum products, under Section 232 of the Trade Expansion Act. This update represents a significant shift in trade enforcement, with major implications for importers throughout North America.

What Are the Tariffs on Steel and Aluminum?

The new rule increases tariffs to 50% only for certain tariff classifications (HTS codes) related to steel, aluminum, and their derivatives. Not all products are affected.

➡️ Only products that fall under the listed HTS codes covered by Section 232 are subject to the 50% duty.

➡️ Products excluded from the list or covered under USMCA (TMEC) may be exempt.

Real Case: How One Importer Reduced Duties from 50% to 12%

One of our clients was initially paying 50% on the total invoice value, unaware that the tariff should only apply to the actual value of the steel content. With our support, the supplier restructured the invoice, separating:

  • The value of the metal
  • Labor and assembly costs
  • Packaging and additional components

What Should Importers Do?

To comply and avoid overpayment, importers should:

  1. Request a detailed invoice breaking down metal content, labor, and other materials
  2. Ensure the product’s HTS code is verified against the Section 232 list
  3. Gather supporting evidence (technical datasheets, cost breakdowns) to defend declared values in case of an audit
  4. Work with experienced customs brokers to properly classify and document imports

US Tariffs on Steel and Aluminum Compliance

This isn’t just a regulatory update—it’s a compliance and cost-saving opportunity. Failing to break down and document your product’s components could lead to unnecessary costs or penalties.

At PCR INTERNATIONAL, we help importers navigate complex regulations, optimize tariff exposure, and ensure full legal compliance.

Not sure if your imports are affected? Let’s review your case.

📍 Laredo, TX | Nuevo Laredo, MX

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📱 +1 956 795 0801 | +1 956 795 0214

🌐 www.pcrinternational.com

Frequently Asked Questions

What is the new 50% tariff on steel and aluminum?
The U.S. government has implemented a 50% tariff on specific steel and aluminum products under Section 232 of the Trade Expansion Act, effective June 4, 2025. This applies only to products covered by specific HTS codes related to steel and aluminum.
Which products are affected by the 50% tariff?
Only products that fall under the listed HTS codes related to steel and aluminum are subject to the 50% duty. Products covered under USMCA (TMEC) or excluded from the Section 232 list may be exempt.
How can I reduce my duty payments?
By requesting a detailed invoice that separates the value of the metal, labor, packaging, and other components, you can lower your effective duty. This allows for a more accurate declaration of steel content, potentially reducing the duty rate to as low as 12%.
How can I ensure compliance with the new tariff regulations?
Importers should request detailed invoices, verify the HTS code against the Section 232 list, and gather supporting evidence like technical datasheets. Working with experienced customs brokers can also help ensure proper classification and documentation.
What should I do if I'm unsure whether my imports are affected?
If you’re unsure, it’s best to review your case with a customs expert. At PCR International, we assist importers in navigating the regulations and ensuring legal compliance. Contact us for a detailed review of your imports.
Tags :
customs,freight forwarding,import/export,international trade,logistics,supply chain
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