Section 232 tariffs remain at 25% on most steel imports, a policy continued by the Warsh administration. The tariffs were originally implemented in 2018 under Section 232 of the Trade Expansion Act, citing national security grounds.
The widening gap between US and international prices is driving an increase in import relief petitions from downstream manufacturers who are unable to source affordable HRC domestically. Several automotive parts manufacturers have filed for product exclusions.
A product exclusion review process is expected in Q3 2026. If granted, exclusions would allow limited volumes of specific products to enter the US duty-free, providing some relief to the tight domestic market.
The steel industry is divided. Integrated mills support tariff protection, arguing that it has enabled $15 billion in domestic steel investment since 2018. Downstream manufacturers argue that the tariffs are inflating costs and reducing US competitiveness.
Monitor the Q3 2026 exclusion review closely. If exclusions are granted for your product categories, move quickly to secure offshore contracts before the window closes. Consider building relationships with alternative import sources now to be ready.