As of August 18, the Bureau of Industry and Security (BIS) has added 407 HTS codes to the list of derivatives subject to steel or aluminum tariffs. The final published number is actually 428 — the pre-publication notice circulated on August 15 listed 407, but the final Federal Register notice added further codes before publication. Either way, the scope is significant and the effective date was immediate.
The notice, published August 19, is Adoption and Procedures of the Section 232 Steel and Aluminum Tariff Inclusions Process. There is no in-transit exemption — the tariffs apply to all goods entered for consumption on or after 12:01 a.m. Eastern Time on August 18, 2025, regardless of when they were loaded or shipped.
CBP issued two guidance notices: CSMS #65936570 covering additional steel derivative products, and CSMS #65936615 covering additional aluminum derivative products.
Where This Comes From
The February 2025 steel and aluminum proclamations (10895 and 10896) authorized the Secretary of Commerce to establish a process for adding downstream derivative products to the Section 232 tariff lists. BIS stood up that process through an interim final rule on April 30, 2025, opening the first submission window in May. During that two-week window, BIS received 58 petitions from U.S. manufacturers and trade associations covering several hundred derivative articles. After public comment and interagency consultation, BIS issued its determinations on August 15 — somewhat past its projected 60-day turnaround — with an effective date of August 18, giving importers essentially no time to adjust.
Of the derivative products requested, BIS rejected 60 proposed subheadings. The reason: those codes are already under separate Section 232 investigations or other trade statute proceedings and will be addressed through those processes instead.
What Products Are Now Covered
The scope of products swept in by this action is broader than what most importers would expect from a “steel and aluminum” tariff expansion. The new HTS codes span more than 20 HTS chapters, covering products not historically associated with metals tariffs. Steel derivative additions include products across Chapters 4, 21, 27, 28, 29, 30, 32, 33, 34, 35, 38, 39, 72, 73, 76, 82, 83, 84, 85, 86, 87, and 94. Aluminum derivative additions cover Chapters 4, 21, 27, 29, 30, 32, 33, 34, 35, 37, 38, 73, 76, 83, 84, 85, 87, and 94. Examples of newly covered product categories include:
- Milk and dairy products (Chapter 4)
- Food preparations (Chapter 21)
- Petroleum-based products and industrial gases (Chapter 27)
- Organic and inorganic chemicals (Chapters 28 and 29)
- Pharmaceuticals (Chapter 30)
- Paints, varnishes, and related products (Chapter 32)
- Soaps, cosmetics, and personal care products (Chapters 33 and 34)
- Miscellaneous chemical products (Chapter 38)
- Plastics and articles thereof (Chapter 39)
- Automotive parts, including a catch-all provision under 8708.99.81 (Chapter 87)
- Air compressors, cables, steel mill rolls, fluid end blocks of hydraulic power pumps, and other industrial goods (Chapters 84 and 85)
- Furniture and parts (Chapter 94)
The inclusion of categories like dairy products and cosmetics illustrates just how far the “derivative” concept is being pushed. The argument, presumably, is that steel or aluminum packaging or components are part of these products’ supply chains. Importers in industries that have never tracked Section 232 exposure now need to check whether their HTS classifications appear on the new lists.
How the Tariff Is Applied
For all newly added derivative products, the 50% Section 232 tariff applies only to the value of the steel or aluminum content — not to the full entered value of the article. The non-steel and non-aluminum content of the same product remains subject to the applicable reciprocal tariff and other duties. This means importers must report affected entries on two lines: one for the metal content at the 50% Section 232 rate, and one for the non-metal content subject to the reciprocal tariff rate. The Chapter 99 reporting requirements from the June CSMS guidance apply here as well.
Steel articles that were melted and poured in the United States are exempt from the Section 232 duty even when incorporated into a derivative product. The UK continues to pay a lower 25% rate rather than 50%. FTZ goods admitted under privileged foreign status before August 18 may retain prior duty treatment if the steel or aluminum content was U.S.-origin — but smelt/cast and melt/pour origin documentation must be available at the time of entry.
What Comes Next
BIS has established three submission windows per year for this inclusion process — in May, September, and January. The next window opens in September 2025, followed by January 2026. Both domestic manufacturers seeking to add products and importers seeking to challenge proposed inclusions should monitor these windows. A similar inclusion process for copper derivatives is expected to follow the same framework. The Section 232 automobile derivative inclusion process was also announced to start July 1, 2025, but as of the August 18 notice its Federal Register implementation had not yet been published.
The immediate practical step for any importer is to review the full list of newly added HTSUS codes against their current import classifications. Given the breadth of chapters covered, the assumption that Section 232 derivatives only affect metal products is no longer safe.
Steel and Aluminum Tariff Questions?
Do you have questions about the new steel and aluminum derivative tariffs and whether your products are affected? Great Lakes Customs Law has been advising importers for more than 15 years. Call us at (734) 855-4999, send a text message, or reach us on WhatsApp.