Section 232 tariffs explained: steel, aluminum, copper, pharmaceuticals, semiconductors and wood (2026 guide)
What Section 232 tariffs cover in 2026, the current rates for metals, pharmaceuticals, semiconductors and wood products, how full-value and metal-content rules work, and what procurement teams should do.
Key takeaways
- Section 232 lets the President restrict imports that threaten national security; in 2026 it covers metals, pharmaceuticals, certain semiconductors and wood products.
- Since April 6, 2026, metals tariffs apply to the full customs value of covered goods, not just their metal content.
- Rates range from 0% to 200% depending on product, metal content, origin and company agreements, so check each SKU.
- Several rates are scheduled to change, including wood products on Jan. 1, 2027 and the pharmaceutical onshoring rate in 2030.
- Goods covered by Section 232 are generally exempt from the Section 301 forced-labor tariff, so classification matters twice.
In this guide
What Section 232 is
Section 232 of the Trade Expansion Act of 1962 lets the President adjust imports that the Commerce Department finds threaten national security. Unlike Section 301 tariffs, which respond to another country’s trade practices, Section 232 tariffs are about domestic capacity in strategic industries. They have become the administration’s main tariff tool since the Supreme Court struck down the IEEPA-based tariffs in February 2026.
For procurement teams, Section 232 matters because the rates are high, the rules are product-specific, and they change often.
Current Section 232 actions at a glance
| Product group | Main rate | Key rules | Effective |
|---|---|---|---|
| Steel, aluminum, most copper (Annex I-A) | 50% | Full customs value; highest applicable rate if several metals | April 6, 2026 |
| Certain copper articles and derivatives (Annex I-B) | 25% | Includes derivatives substantially made of metal | April 6, 2026 |
| Metal-intensive industrial and grid equipment, ag equipment, residential HVAC | 15% transitional | Through Dec. 31, 2027 | June 8, 2026 |
| Goods made abroad entirely from U.S.-smelted or poured metal | 10% | “Entirely” threshold lowered to 85% | June 8, 2026 |
| Articles with 15% or less metal content | 0% | Metal weight must be reported | June 8, 2026 |
| Russian-origin aluminum | 200% | Separate proclamation | In force |
| Patented pharmaceuticals and APIs | 100% default; 0–20% with deals; 15% EU, Japan, Korea, Switzerland | Generics exempt for now | July 31 / Sept. 29, 2026 |
| Certain advanced logic semiconductors | 25% | Broad end-use exemptions | Jan. 15, 2026 |
| Softwood timber and lumber | 10% | — | Oct. 14, 2025 |
| Upholstered wooden furniture | 25%, rising to 30% | Increase deferred to Jan. 1, 2027 | Oct. 14, 2025 |
| Kitchen cabinets and vanities | 25%, rising to 50% | Increase deferred to Jan. 1, 2027 | Oct. 14, 2025 |
Rates and dates come from the sources listed below. Always confirm against the official proclamation, annexes and CBP guidance before relying on them.
Metals: what changed in 2026
Full customs value. Since April 6, 2026, metals tariffs apply to the full customs value of covered articles. Before, many derivative products paid duty only on the value of their metal content. For a machine where steel is a small share of value, that change can multiply the duty.
The June adjustments. A June 2026 proclamation, effective June 8 and temporary through 2027, created a 15% transitional rate for metal-intensive industrial and electrical grid equipment, moved agricultural equipment and residential HVAC from 25% to 15%, and removed articles with 15% or less metal content from the tariffs. Products made entirely from U.S.-melted or smelted metal pay 10%, and the threshold for “entirely” fell from 95% to 85%.
Reporting. Steel entries need the country of melt and pour; aluminum the country of smelt and cast. Certain copper wire and cable entries need the primary smelt and cast country, and CBP began rejecting entries with missing copper data on Sept. 14, 2026.
No stacking between metals. A product containing several covered metals pays the applicable rate once, at the highest rate that applies.
UK. Qualifying UK-origin metal content gets reduced rates (25% and 15%) pending trade talks.
Pharmaceuticals
The April 2, 2026 proclamation set a 100% default tariff on patented pharmaceuticals and their active ingredients, phased in for large named companies on July 31 and for all other importers on Sept. 29. Rates are lower for imports from the EU, Japan, South Korea, Switzerland and Liechtenstein (generally 15%) and the UK (10%). Companies with approved onshoring agreements pay 20%, rising to 100% in April 2030, and those with both onshoring and HHS pricing agreements pay 0% through Jan. 20, 2029. Generics and biosimilars are exempt for now. See our full explainer.
Semiconductors
Since Jan. 15, 2026, certain advanced logic chips, and articles containing them, that meet specific processing-performance and memory-bandwidth thresholds carry a 25% tariff. The covered thresholds are narrow, aimed at certain AI chips. Imports are exempt when used for U.S. data centers, U.S. repairs, U.S. R&D, U.S. startups, non-data-center consumer and civil industrial applications in the U.S., the U.S. public sector, or other uses Commerce finds support the U.S. technology supply chain. No drawback is available. Commerce recommended broader tariffs later, paired with an offset program for domestic investment.
Wood products
Since Oct. 14, 2025, softwood timber and lumber carry 10%, and upholstered wooden furniture, kitchen cabinets and vanities 25%. Increases to 30% for upholstered furniture and 50% for cabinets and vanities were deferred from Jan. 1, 2026 to Jan. 1, 2027, and will not apply to countries that reach agreements with the U.S.
How Section 232 interacts with other tariffs
- Forced-labor Section 301 tariffs: goods subject to Section 232 are excluded from the forced-labor tariff.
- China Section 301 tariffs: generally still apply on top of Section 232 for China-origin goods, unless excluded.
- Antidumping and countervailing duties: apply independently.
What procurement teams should do
- Classify every imported SKU and identify which Section 232 annex, if any, applies.
- Get metal content data from suppliers, including weight and country of melt, smelt or cast. It decides both the rate and whether entries clear.
- Re-run landed cost for derivative products affected by the switch to full customs value.
- Ask suppliers about company agreements, especially in pharmaceuticals and medical devices, where rates differ by maker.
- Put tariff change clauses in contracts that require documented, product-specific pass-through.
- Track scheduled changes: Jan. 1, 2027 for wood products, Dec. 31, 2027 for the transitional metals rates, and 2029–2030 for pharmaceuticals. Our tariff deadline tracker lists dates as they’re announced.
Related reading
Questions procurement teams are asking
What is a Section 232 tariff?
A duty imposed under Section 232 of the Trade Expansion Act of 1962, which allows the President to adjust imports that the Commerce Department finds threaten national security. Unlike Section 301, it isn't tied to another country's trade practices.
What is the Section 232 tariff on steel in 2026?
Most steel, aluminum and copper articles carry 50%, applied to full customs value since April 6, 2026. Some derivatives carry 25% or a transitional 15%, and articles with 15% or less metal content are no longer covered.
Does the Section 232 tariff apply to the whole product or only the metal?
Since April 6, 2026, to the full customs value of covered articles, regardless of metal content. Before that, many derivative products paid duty only on the value of their metal content.
Are generic drugs subject to the Section 232 pharmaceutical tariff?
Not currently. Generics, biosimilars and their ingredients are exempt, with a Commerce review due about a year after the April 2026 proclamation.
Which semiconductors are subject to Section 232 tariffs?
Since Jan. 15, 2026, certain advanced logic chips meeting specific performance and memory-bandwidth thresholds carry 25%, with broad exemptions for U.S. data centers, R&D, startups, public sector and other domestic uses.
How we wrote this guide
This guide draws on 5 sources, listed below, and on our own reporting. It was last reviewed on October 14, 2026 and is updated when rules or market conditions change. It is general guidance, not legal or financial advice. See our editorial standards.
Sources
- GHY — U.S. adjusts Section 232 tariffs on aluminum, steel and copper
- Federal Register — Further adjusting the tariff regimes for imports of aluminum, steel and copper (June 4, 2026)
- International Trade Insights — Section 232 tariffs on patented pharmaceuticals and APIs
- EY — Section 232 proclamation imposes 25% tariff on certain semiconductors
- Ginger Control — Section 232 wood products tariffs stay at 25% through 2026
