Section 232 Tariffs

Section 232 Tariffs are trade measures imposed under Section 232 of the Trade Expansion Act of 1962. This statute authorizes the President of the United States to adjust imports, including through the imposition of tariffs or quotas, if the U.S. Department of Commerce determines that specific imports threaten to impair national security.

Under a Section 232 investigation, the Department of Commerce evaluates factors such as domestic production capacity, defense requirements, supply chain vulnerabilities, and the economic impact of imports on critical industries. If a national security threat is identified, the President may implement remedial measures, which often include additional ad valorem duties on covered products.

Section 232 tariffs have most notably applied to certain steel and aluminum products, with additional measures affecting derivative goods. These duties are assessed in addition to standard duty rates and may also apply concurrently with other trade remedies, depending on the product and country of origin.

Key considerations regarding Section 232 tariffs include:

• Product scope: Applied to specific HTSUS classifications identified in Presidential Proclamations
• National security basis: Implemented following a Commerce Department investigation
• Country exemptions or agreements: Certain countries may receive exclusions, quotas, or negotiated arrangements
• Product exclusions: Importers may request product-specific exclusions where domestic supply is insufficient
• Duty drawback: Eligibility for drawback depends on the specific proclamation and statutory limitations

Because Section 232 measures are driven by national security determinations rather than traditional trade remedy investigations, they carry distinct legal and compliance considerations for importers.