US Metal Tariffs: New Regulations for Steel, Aluminum, and Copper

On April 2, 2026, President Donald J. Trump signed a Proclamation titled Strengthening Actions Taken to Adjust Imports of Aluminum, Steel and Copper into the United States. The order modifies the tariff regimes established under Section 232 of the Trade Expansion Act of 1962 to address national security threats and bolster the domestic manufacturing of strategic metals and their derivatives.

The Proclamation alters how tariffs are assessed, requiring that they reflect the full customs value of imported steel, aluminum, and copper products. This change is intended to ensure that duties are not based on an artificially low foreign price.

Tariff Rate Structures

The new rules establish a tiered system of flat tariffs based on the composition and nature of the imported goods. Articles made entirely or almost entirely of steel, aluminum, or copper—such as aluminum sheet and steel coils—are subject to a flat 50% tariff on their full value.

Derivative articles that are substantially made of these metals will pay a flat 25% tariff on their full value. However, certain metal-intensive industrial equipment and electrical grid equipment are subject to a reduced rate of 15% through 2027 to support the current industrial base buildout in the United States.

The Proclamation also introduces incentives for the use of domestic materials. Products manufactured abroad that use entirely American steel, aluminum, and copper will be subject to a lower tariff rate of 10%. Products containing 15% or less of these metals are no longer subject to Section 232 metals tariffs.

Copper Integration and International Impact

Copper was added to the Section 232 tariffs program in July 2025 at a 50% rate. The April 2, 2026, Proclamation further integrates copper into the modified calculation and rate structures. These measures have direct implications for global exporters, including Peru, where copper manufactures now face tariffs of up to 50%.

Other international trade conditions remain or have been modified. Aluminum articles of Russian origin continue to be subject to a 200% duty. For articles of United Kingdom origin, tariffs of 15% or 25% will apply depending on the specific product category.

Market reactions followed the announcement, with shares of Freeport-McMoRan rising sharply after the disclosure of the reduced tariff rates for certain derivative products.

Implementation and Transitional Rules

The Proclamation establishes a transitional regime for specific products listed in Annex III. These products will use the HTSUS Column 1 general duty rate as a reference until December 31, 2027. Effective January 1, 2028, these products will transition to the standard Section 232 rates.

Regarding derivative articles, some have been removed from the scope of the tariffs via Annex II. The Department of Commerce and the Office of the United States Trade Representative will continue to add additional derivative articles to the list on a rolling basis.

The Proclamation also addresses the recovery of duties. While broader drawback remains prohibited, limited manufacturing drawback is permitted for qualifying Trade Agreement Partner goods.

Economic and Security Objectives

The administration stated that these strengthened tariffs are designed to protect the economic resilience of vital industries and the financial position of American workers. According to White House documentation, the United States became the third largest steel producing nation in the world in 2025, a growth attributed to the Section 232 tariffs program.