06-09-2025

Adjusting Imports of Aluminum and Steel Into the United States

ProclamationView the Original .pdf
View the Original .pdf

The 1-Minute Brief

What: This presidential proclamation doubles the existing tariffs on most steel and aluminum imports from 25 percent to 50 percent, citing national security concerns. It also provides a temporary exemption for the United Kingdom from the rate hike, pending the implementation of a separate trade agreement.

Money: While the proclamation itself does not contain a formal Congressional Budget Office (CBO) score, the tariffs are intended to increase the cost of imported steel and aluminum. A 2023 U.S. International Trade Commission report on previous tariffs found they stimulated domestic production with minor price effects. A 2025 conventional analysis estimated that Section 232 tariffs could increase federal tax revenue by $575 billion over the next decade.

Your Impact: The most likely direct effect on an average American will be an increase in the cost of goods made with steel and aluminum, such as cars, appliances, and canned goods. The extent of this impact may be offset if domestic production increases and stabilizes prices.

Status: This is a Presidential Proclamation, issued on June 3, 2025, and went into effect on June 4, 2025.

What's Actually in the Bill

This proclamation takes several key actions based on the premise that foreign-subsidized, low-priced steel and aluminum are being "dumped" in the U.S. market, undermining the domestic industries and threatening national security.

Core Provisions:

  • Tariff Increase: The ad valorem tariff on imports of steel mill articles and aluminum articles, including their derivatives, is increased from 25 percent to 50 percent.
  • Effective Date: The new tariff rate became effective at 12:01 a.m. eastern daylight time on June 4, 2025.
  • United Kingdom Exception: Imports from the United Kingdom are temporarily exempted from the 50 percent rate and will remain at 25 percent. This is contingent on the implementation of the U.S.-UK Economic Prosperity Deal (EPD). The Secretary of Commerce has the authority to adjust these rates or establish import quotas for the U.K. on or after July 9, 2025.
  • Enforcement: U.S. Customs and Border Protection (CBP) is directed to ensure strict compliance with import declaration requirements, with severe penalties for underreporting the steel and aluminum content of imported goods.
  • Exclusion Process Ended: The proclamation supports the elimination of the previous process that allowed companies to seek exclusions from the tariffs.

Stated Purpose (from the Sponsors):

The administration's stated goal is to counter foreign countries that offload excess, low-priced steel and aluminum in the U.S. market. The purpose is to protect and revitalize the domestic steel and aluminum industries, enabling them to achieve and maintain production capacity rates necessary for sustained health and national defense needs.

Key Facts:

Affected Sectors: Manufacturing, Automotive, Construction, Aerospace, Agriculture, and any industry that uses steel or aluminum in its products.
Timeline: The tariff increase was effective June 4, 2025. The special provisions for the United Kingdom are subject to review on or after July 9, 2025.
Scope: The tariffs apply to steel and aluminum imports from all countries except the United Kingdom, which is subject to a conditional, lower rate.

The Backstory: How We Got Here

Timeline of Events:

The Section 232 Era (2018-Present):

  • March 2018: The Trump administration first imposed a 25 percent tariff on steel and a 10 percent tariff on aluminum imports from most countries, citing a Department of Commerce investigation under Section 232 of the Trade Expansion Act of 1962. This act allows the President to impose tariffs on goods deemed critical to national security.
  • 2018-2024: The tariffs led to a temporary boost in domestic steel capacity utilization, which peaked at 80% in 2021 before declining. The aluminum industry also saw a capacity utilization increase from 40% in 2017 to 61% in 2019, which then fell to 55% by 2023. The measures sparked retaliatory tariffs from other nations.
  • February 10, 2025: The President reinstated a 25% tariff on steel and increased the aluminum tariff to 25% for most countries, effective March 12, 2025.
  • May 8, 2025: The U.S. and the United Kingdom announced the "U.S.-UK Economic Prosperity Deal" (EPD), a non-binding agreement to reduce or remove various tariffs, including those on steel and aluminum.
  • June 3, 2025: The proclamation to double the tariffs to 50% was issued, with the special carve-out for the U.K. based on the EPD.

Why Now? The Political Calculus:

  • The administration argues that the previous 25 percent tariffs were insufficient to counter the effects of global overcapacity and protect domestic industries, which have seen production levels fall after a brief recovery.
  • This action is part of a broader "America First" economic strategy aimed at reducing reliance on imports, protecting key domestic industries, and using tariffs as a tool for trade negotiations.
  • The timing reflects ongoing efforts to strengthen the domestic manufacturing base, a key political and economic priority. Supporters point to job gains and higher wages in the metals industry during the first term as evidence of success.

Your Real-World Impact

The Direct Answer: This action primarily affects industries that rely on steel and aluminum, but the costs will likely be passed on to consumers through higher prices for a wide range of products.

What Could Change for You:

Potential Benefits:

  • For workers in the domestic steel and aluminum industries: The tariffs are designed to protect and create manufacturing jobs by making U.S. production more competitive against foreign imports.
  • For communities reliant on these industries: A healthier domestic steel and aluminum sector could lead to increased local investment and economic stability.

Possible Disruptions or Costs:

Short-term (3-12 months):

  • Higher Prices: Consumers are likely to see increased prices for goods like automobiles, appliances, homes, and even beer in aluminum cans, as manufacturers pass on the higher material costs.
  • Supply Chain Issues: Industries that depend on specific types of imported steel or aluminum not readily available from U.S. producers may face production delays and disruptions.

Long-term:

  • Sustained Higher Costs: If the tariffs remain in place, they could lead to permanently higher prices for many consumer goods.
  • Economic Drag: Some analyses suggest that widespread tariffs, when accounting for retaliation and impacts on other sectors, could reduce overall U.S. GDP.

Who's Most Affected:

Primary Groups: U.S. manufacturers in the automotive, construction, and appliance sectors; domestic steel and aluminum producers and their employees.
Secondary Groups: American consumers, farmers (who face retaliatory tariffs on agricultural exports), and companies involved in international shipping and logistics.
Regional Impact: States with a heavy presence of steel and aluminum manufacturing (like Pennsylvania, Ohio, and Indiana) could see economic benefits, while states with major ports or industries reliant on imported metals could be negatively impacted.

Bottom Line: While intended to bolster U.S. manufacturing, these tariffs will likely increase the cost of many everyday items for the average American.

Where the Parties Stand

Republican Position: "Protecting American Workers and Industries"

Core Stance: Generally supportive of using tariffs to protect domestic industries from what they view as unfair foreign competition.

Their Arguments:

  • ✓ Tariffs are a necessary tool to combat global overcapacity, particularly from China, and protect U.S. national security.
  • ✓ The policy strengthens the U.S. economy by encouraging reshoring of manufacturing jobs and increasing domestic production.
  • ⚠️ Some more moderate, free-trade-oriented Republicans may express concern over the potential for price hikes, trade wars with allies, and negative impacts on downstream industries.
  • ✗ Opposition is generally limited, though some may disagree with the specific application or breadth of the tariffs.

Legislative Strategy: To support the President's authority to act on trade and to pass related legislation like the Reciprocal Trade Act, which would give the president more power to impose retaliatory tariffs.

Democratic Position: "Questioning the Strategy and Consumer Impact"

Core Stance: The party is divided. There is a growing alignment with Republicans on taking a tougher stance on trade, especially with China, but there are also strong concerns about the impact of broad tariffs on consumers and allies.

Their Arguments:

  • ✓ Many Democrats support measures to protect American workers and manufacturing from unfair global competition.
  • ⚠️ Concerns are frequently raised that broad tariffs act as a tax on American consumers and businesses, raising costs for families and disrupting supply chains.
  • ✗ Strong opposition exists to using national security as a justification for what are seen as protectionist economic policies that could alienate key allies. Some advocate for more targeted, negotiated solutions.

Legislative Strategy: To push for greater congressional oversight of presidential tariff authority and to propose alternative strategies that focus on targeted enforcement and international cooperation rather than broad tariffs.

Constitutional Check

The Verdict: ⚠️ Questionable

Basis of Authority:

The President is using authority granted by Section 232 of the Trade Expansion Act of 1962. This law allows the President to adjust imports if the Secretary of Commerce finds they threaten to impair national security. The proclamation also cites the International Emergency Economic Powers Act (IEEPA) and Article II of the Constitution.

Relevant Portion of the Constitution (Article I, Section 8, Clause 3): "The Congress shall have Power... To regulate Commerce with foreign Nations..."

Constitutional Implications:

Non-Delegation Doctrine: The primary legal question is whether Congress, through Section 232, unconstitutionally delegated its authority to regulate foreign commerce to the President. Challengers argue the term "national security" is too broad, lacking an "intelligible principle" to guide the President's discretion.
Precedent: The Supreme Court has historically been reluctant to strike down laws on non-delegation grounds. In a 1976 case, Federal Energy Administration v. Algonquin SNG, Inc., the Court upheld Section 232, finding it did provide a sufficient "intelligible principle." Lower courts have cited this precedent when upholding the tariffs. However, some judges have expressed "grave doubts" about the statute's constitutionality under modern interpretation.
Federalism: This issue primarily concerns the separation of powers between the legislative and executive branches of the federal government, rather than states' rights.

Potential Legal Challenges:

Legal challenges against the Section 232 tariffs have been filed, arguing they are an unconstitutional delegation of legislative power. So far, lower courts, feeling bound by existing Supreme Court precedent, have upheld the tariffs. However, the issue could eventually reach the Supreme Court, which could decide to revisit its earlier, more deferential interpretation of the law.

Your Action Options

TO SUPPORT THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to support the President's Section 232 tariffs on steel and aluminum to protect American jobs."

30-Minute Deep Dive:

  • Write a Detailed Email: Contact your representatives and members of the Senate Finance Committee and House Ways and Means Committee to express your support.
  • Join an Organization: Groups like the Alliance for American Manufacturing, the American Iron and Steel Institute (AISI), and the Steel Manufacturers Association (SMA) actively support these tariffs.

TO OPPOSE THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to oppose the Section 232 tariffs on steel and aluminum because they raise costs for consumers and harm American businesses."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Submit a letter to your local newspaper outlining how the tariffs will impact your community or business.
  • Join an Organization: The Tariff Reform Coalition, led by the National Foreign Trade Council (NFTC), is an alliance of trade associations that advocates for the removal of Section 232 tariffs.