Section 232 Tariff
Trade Agreements & Rates · US Import Rules
What is Section 232 Tariff?
A Section 232 tariff is a US tariff imposed on imports of a specific product category, under Section 232 of the Trade Expansion Act of 1962, on the legal basis that the imports threaten national security. It’s a different legal mechanism from Section 301 tariffs, and the two can apply to different, overlapping, or entirely separate sets of goods at the same time.
Section 232 measures have most commonly targeted sectoral categories like steel, aluminum, automobiles, and auto parts, rather than being tied to a single country of origin the way Section 301 typically is - though specific trade deals can set a different, often lower, negotiated Section 232 rate for goods from a particular country.
A Section 232 tariff is like a tariff aimed at an entire industry rather than one country - if steel or cars are the target sector, it applies broadly to that sector's imports, on the reasoning that relying too heavily on foreign supply in that area is a security risk.
When to Use It
Check for a Section 232 tariff when estimating duty on goods in a sector it commonly covers - autos, steel, and aluminum in particular - since it applies on top of (or instead of) other duty mechanisms and isn’t always visible in a product’s general tariff classification alone.
Section 232 and Section 301 tariffs are easy to conflate, but they’re legally distinct: Section 232 is sector-based and grounded in national security, while Section 301 is typically country-specific and grounded in responding to unfair trade practices. A product can be affected by one, both, or neither, and a court ruling or trade deal affecting one doesn’t automatically affect the other.
Frequently Asked Questions About Section 232 Tariff
Is a Section 232 tariff the same as a Section 301 tariff?
No - they’re separate legal mechanisms. Section 232 targets specific product sectors on national-security grounds; Section 301 typically targets specific countries in response to trade practice disputes. A product can be subject to either, both, or neither.
Which products are most commonly affected by Section 232 tariffs?
Steel, aluminum, automobiles, and auto parts have been the most prominent categories, though the mechanism can in principle be applied to other sectors a national-security investigation covers.
Can a trade deal change a country’s Section 232 rate?
Yes - some negotiated deals have set a specific, often reduced, Section 232 rate for a particular country’s goods in an affected sector, distinct from the general rate applied to other countries.
How Well Do You Know Section 232 Tariff?
3 questions - about a minute.