Insights

The second Trump administration has focused heavily on trade regulation, including initiating several investigations under Section 232 of the Trade Expansion Act of 1962 (“Section 232 investigations”). Section 232 investigations are conducted by the Department of Commerce Bureau of Industry and Security (“BIS”) and focus on evaluating the impact that imports of certain products have on U.S. national security interests. Notably, these investigations can lead to the implementation of targeted tariffs on specific product groups to address identified threats to U.S. national security. Multiple new tariff measures have been enacted under Section 232 just over the course of this year, and several more on-going investigations may lead to additional tariffs in the near future. This article provides an overview of the Trump administration’s utilization of Section 232 authority and highlights key actions and compliance tips importers should be aware of the trend of increased Section 232 actions continues.

Background on Section 232

Historically, the use of Section 232 authority to initiate investigations and take action to protect U.S. national security has been limited. From the implementation of the Trade Expansion Act in 1962 to the start of President Trump’s first term in 2017, less than 40 Section 232 investigations had ever been initiated and only two of those investigations led to the enactment of import restrictions. However, since President Trump’s first term, Section 232 investigations have become increasingly more common with multiple tariff actions implemented as a result of these investigations.

In fact, President Trump’s first term saw the initiation of 7 new Section 232 investigations. Since the start of the second Trump administration, 12 new investigations (and counting) have been initiated and all completed investigations have led to the implementation of additional tariffs. Impacted products span from metals to finished products to vehicles, affecting importers across a wide range of industries. As the trend of increased use of Section 232 authorities continues, it is important for importers to be up to date on the many on-going Section 232 investigations and remain aware of potential tariffs that may impact their products.  

Active Section 232 Tariffs

Since January 2025, several Section 232 investigations have led to the implementation of new tariff actions targeting certain product groups. Below we offer an overview of some of the key Section 232 actions that have occurred over the course of this year.

Copper, Steel, and Aluminum

Copper, steel, aluminum products and their derivates currently face a 50% tariff following BIS’s completion of respective Section 232 investigations into the effect of imports of these products on U.S. national security. Importantly, the Section 232 tariff rates for imports of copper, steel, and aluminum products have been subject to several revisions and developments since their initial enactment.

Almost immediately after taking office in January 2025, the Trump administration began taking steps to review and expand prior determinations and tariff actions taken under Section 232 targeting imports of steel and aluminum products. Implementing regulations published by the Department of Commerce in March 2025 set a 25% tariff rate on a wide range of imports of steel, aluminum, and derivative products. The 25% tariff rate was subsequently increased to 50% on June 4, 2025. The rapid expansion of Section 232 tariffs on steel and aluminum imports left importers with little time to adjust to increased costs.

However, certain countries have received reprieve from the 50% tariff rate pursuant to bilateral trade agreement frameworks developed with the U.S. For example, pursuant to the U.S.-UK Economic Prosperity Deal announced on May 8, 2025, the tariff rate for imports of steel and aluminum products from the United Kingdom has been set to a reduced rate of 25%. In addition, certain aerospace items from the UK, EU, and Japan are exempted from Section 232 steel and aluminum tariffs as a result of individual trade agreements reached between those countries and the U.S.

In addition to tariffs on steel and aluminum products, the Trump administration has imposed a 50% Section 232 tariff on certain imports of copper products from all countries. The copper tariffs currently apply to semi-finished copper products and intensive copper derivatives, leaving out other forms such as raw or scrap copper. However, the President has authorized the Secretary of Commerce to act under the Defense Production Act to protect domestic production of high-quality copper scrap and copper input materials. Future actions that may be taken by the Secretary of Commerce include implementing a requirement that at least 25% of U.S.-produced high-quality copper scrap to be sold in the U.S. and a requirement that at least 25% (subject to periodic increases) of U.S.-produced copper input materials, such as copper ore and concentrates, be sold in the U.S.

Automobiles and Heavy-Duty Trucks

Imports of automobiles, including passenger vehicles and light trucks, and key auto parts are subject to a 25% Section 232 tariff. The tariffs on automobiles became effective on April 3, 2025, and the tariffs on automobile parts became effective on May 3, 2025 (“the automobile tariffs”). However, multiple bilateral agreements between the U.S. and its trading partners include certain relief from the automobile tariffs. Pursuant to respective trade agreements with the U.S., automobile imports from the E.U., Japan, and South Korea (prospective) are subject to a reduced 15% tariff rate. Automobile imports from the U.K. have a quota-based tariff scheme, where the first 100,000 automobile imports are subject to a reduced 10% tariff rate and imports in excess of the quota are subject to the full 25% tariff, effective June 30, 2025. In addition, for automobile imports qualifying for preferential treatment under the U.S.-Mexico-Canada Agreement (“USMCA”), the 25% tariff only applies to the non-U.S.-origin content of the automobile. Effective April 5, 2025, to April 30, 2030, U.S. manufacturers of automobiles may also apply for an import offset adjustment equal to 3.75% of the aggregate manufacturer’s suggested retail price (“MSRP”) of all automobiles assembled in the U.S. to apply to imports of automobile parts accounting for 15% of the automobile’s value.

Additionally, the Trump administration implemented a 25% Section 232 tariff on imports of medium- and heavy-duty vehicles (“MHDV”) and MHDV parts, as well as a 10% tariff on buses, on November 1, 2025. MHDV imports qualifying for preferential treatment under the USMCA may apply to have the 25% tariff only applied to the non-U.S. content of the vehicle. MHDV parts that qualify for preferential treatment under the USMCA are currently exempt from the 25% tariff until the Department of Commerce establishes a process for applying the tariff only to the non-U.S.-origin value of such parts. No USMCA-related relief is available for imports of buses. Like the tariff offset for automobile part imports, U.S. manufacturers of MHDVs may apply for an import adjustment offset equal to 3.75% of the aggregate value of all MHDVs they produce in the U.S. to apply to parts accounting for 15% of the MHDV’s value. This tariff offset adjustment will be available from November 1, 2025, through October 31, 2030.

Timber and Lumber

Section 232 tariffs on timber, lumber, and derivative products became effective on October 14, 2025. Specifically, softwood lumber and timber imports are subject to a 10% tariff rate. Imports of upholstered furniture, kitchen cabinets, and vanities are currently subject to a 25% tariff rate. This tariff rate will increase to 30% for upholstered furniture imports and 50% for kitchen cabinets and vanities beginning January 1, 2026. However, upholstered furniture, kitchen cabinets, and vanities imported from the UK are and will remain subject to a reduced 10% tariff rate while imports from the EU and Japan are subject to a total 15% reduced tariff rate.

On-going Section 232 Investigations

In addition to the Section 232 actions described in the previous section, several Section 232 investigations remain on-going and may lead to the implementation of additional tariff measures in the near future. Importers should monitor the following investigations closely to stay up to date on opportunities to submit public comments for consideration during Commerce’s investigation, announcements related to the potential scope and extent of new tariff actions, and any possible tariff exemptions or relief that may be available for certain imports.

Pharmaceuticals

On April 1, 2025, the Department of Commerce initiated a Section 232 investigation into imports of pharmaceuticals, active pharmaceutical ingredients (“APIs”), and derivative products. On September 25, 2025, President Trump, via a post on Truth Social, threatened to implement a 100% tariff on imports of branded or patented pharmaceutical products unless an importing company is actively building their pharmaceutical manufacturing plant in the U.S. President Trump stated that these tariffs would become effective October 1, 2025, however as of date, no tariffs have been officially implemented as the administration continues negotiations with pharmaceutical companies and U.S. trading partners.

Although pharmaceutical tariffs have not been officially implemented, certain companies and governments have secured various forms of relief from any potential future tariff actions that may be implemented against pharmaceutical imports. Large pharmaceutical companies such as Novo Nordisk, Eli Lilly, and EMD Serono have announced agreements with the Trump administration to offer lower prices on prescription drugs sold in the U.S. and expand domestic manufacturing in exchange for relief from potential pharmaceutical tariffs imposed in the future. Additionally, pharmaceutical imports from the EU and Japan are set to face a maximum 15% tariff rate pursuant to trade agreements with the U.S.  

Semiconductors

Semiconductors have also been a target of Section 232 tariff threats following the Department of Commerce’s initiation of an investigation under Section 232 into imports of semiconductors and semiconductor manufacturing equipment (“SME”) on April 1, 2025. The Trump administration has made multiple informal announcements regarding the potential implementation of tariffs on semiconductor imports, however as of date no tariff scheme has officially been announced. Based on statements made by the Trump administration, the Section 232 tariff rate for semiconductors and SME may be substantial (President Trump suggested a 100% tariff rate in August 2025) after an adjustment period with a lower tariff rate. Companies producing semiconductors domestically are likely to be granted some relief from the potential future tariffs as well as countries that reach trade agreements with the U.S. on this topic.

Processed Critical Minerals

Another key on-going Section 232 investigation was initiated by the Department of Commerce on April 22, 2025, into imports of processed critical minerals and derivative products. The U.S.’s dependence on critical mineral imports is a significant point of contention in U.S.-China trade due to China’s dominance in this sector. Critical minerals encompass those included in the “Critical Minerals List” published by the United States Geological Survey (USGS) pursuant to section 7002(c) of the Energy Act of 2020 as well as uranium and rare earth metals as identified by the Department of Energy. Due to the impact critical minerals have on U.S. national security, the Trump administration is likely to implement Section 232 tariffs on these imports in the near future. Several bilateral agreements or agreement frameworks on critical minerals have been developed between the U.S. and trading partners including Japan, Cambodia, Australia, Malaysia, and Thailand. Importers should continue to monitor critical mineral developments and new agreements as these may impact whether tariff exclusions or reduced tariff rates may be provided under potential Section 232 critical mineral tariff schemes.  

Looking Forward

Considering the Trump administration’s focus on trade, the number of Section 232 investigations is likely to grow, especially for products that may have a significant effect on U.S. national security or are at issue in trade conflicts with other nations. Additionally, as the Supreme Court prepares to rule on the constitutionality of President Trump’s tariff actions under the International Emergency Economic Powers Act (“IEEPA”), which includes the “Liberation Day” reciprocal tariffs, other avenues for tariffs, including Section 232 actions, are becoming increasingly important. Importers should also be aware that more country-specific tariff reductions may be created (or removed) as the Trump administration continues trade negotiations with its foreign counterparts.

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If you have questions on Section 232 tariffs or import compliance, please feel free to contact the attorneys at Torres Trade Law, PLLC. In addition, to stay up to date on the current state of Section 232 investigations or country specific tariff rates, visit our Torres Trade Trump Table and Global Tariff Navigator here.