Trump Signs New Metal Tariff Rules for Steel, Aluminum, Copper

The United States has restructured its Section 232 metals tariffs under a new tiered framework, imposing 50% on steel, aluminum, and copper products, 25% on derivatives and 15% on industrial equipment through 2027. Mexico's steel sector, operating at 55% capacity utilization with US-bound exports down 55% over six months, faces a dual squeeze from Asian import competition and US Section 232 exposure, prompting Minister of Economy Marcelo Ebrard to permanently extend tariffs of 10% to 35% on steel from non-FTA countries and tighten oversight of IMMEX and other special import regimes. Both measures are directly relevant to Mexican manufacturers in the construction, automotive, and industrial sectors that rely on imported steel inputs and to companies using Mexico as a transshipment point for Asian goods entering the US market.

President Donald Trump signed a proclamation tightening the structure of Section 232 tariffs on imported steel, aluminum and copper, establishing a tiered system based on metal content and product type. 

Under the new US framework, articles made entirely or almost entirely of aluminum, steel or copper will pay a flat 50% tariff on their full value. Derivative articles substantially made of these metals will face a flat 25%, while certain metal-intensive industrial and electrical grid equipment will pay 15% through 2027 to support domestic industrial expansion. Products manufactured abroad using exclusively US steel, aluminum or copper will be subject to a lower 10% rate. Products containing 15% or less of these metals will no longer be subject to Section 232 tariffs.

The proclamation redefines how tariffs are assessed, ensuring they reflect the full value of imported products rather than what the White House described as "an artificially low foreign price," and establishes clear rules for calculating Section 232 metals tariffs across product categories.

US Metals Buildout

The White House said the United States became the third-largest steel-producing nation in the world in 2025, citing the Section 232 program as a driver. Over 4Mt of new crude steelmaking capacity is expected to come online in the next two years, with projects underway in West Virginia, Arkansas and South Carolina. Century Aluminum and Emirates Global Aluminum announced a joint venture to build the first new aluminum smelter in the United States in decades, located in Oklahoma. Companies including Highland Copper, Ivanhoe Electric, Rio Tinto and Wieland are expanding US copper mining, smelting and fabrication operations.

The proclamation builds on a series of prior actions. In February 2025, Trump overhauled steel and aluminum tariffs by eliminating product-specific and country-specific exemptions accumulated under the Biden administration. In June 2025, tariff rates on steel and aluminum were raised to 50%. In July 2025, copper was added to the Section 232 program at the same 50% rate.

As the United States moves to tighten its metals tariff framework, Mexico is pursuing parallel measures to protect its domestic steel industry. Mexico's Ministry of Economy published a notice in the Official Gazette imposing provisional countervailing duties on hot-rolled steel imports from China and Vietnam, following an investigation initiated after a complaint filed in November 2024 by Ternium. The investigation covers import operations carried out between September 2023 and August 2024.

The duties vary by company and country. For Chinese exporters, Shanghai Meishan Iron faces a tariff of US$0.20/kg, while Wuhan Iron is subject to US$0.21/kg. Other Chinese exporters will face duties ranging from US$0.22/kg to US$0.23/kg.

For Vietnamese producers, Hoa Phat Dung Quat will be subject to a duty of US$0.19/kg, while Formosa Ha Tinh and other exporters will face US$0.196/kg. The measures apply across multiple import regimes, including definitive, temporary and bonded warehouse entries.

The provisional duties complement a broader set of actions announced by Minister of Economy Marcelo Ebrard at the 78th General Assembly of CANACERO, Mexico's steel industry chamber. The government has permanently extended tariffs of 10% to 35% on steel imports from countries without free trade agreements with Mexico, including China, Vietnam and South Korea, covering 220 steel products. The tariffs, originally imposed in April 2024 on 1,466 products and set to expire in April 2025, will now remain in place indefinitely.

Mexico's steel sector is currently operating at approximately 55% capacity utilization, while exports to the United States have declined 55% over the past six months, Ebrard said. The sector also faces pressure from US Section 232 tariffs and rising volumes of low-cost Asian steel imports.

In parallel, the government plans to phase out temporary import permits for steel products under the IMMEX program, requiring manufacturers to source materials domestically or pay applicable tariffs. Authorities will also strengthen oversight of special import regimes, including IMMEX, PROCET and the Regla Octava, to prevent their use as transshipment channels for Asian goods entering the United States through Mexico. Public procurement criteria at federal and state levels will also shift to incorporate domestic steel content thresholds, replacing lowest-cost procurement standards.

Ebrard said reducing reliance on imported steel is expected to be a component of upcoming trade discussions between Mexico and the United States, where the issue intersects with ongoing USMCA review negotiations and Washington's concern over supply chain integrity.