[SMM Analysis]The scope of tariffs on steel derivatives under Section 232 has been expanded, with multiple product categories facing an additional 50% tariff.

In 2018, the Trump administration, citing national security concerns, imposed tariffs of 25% and 10% on imported steel and aluminum products, respectively, under Section 232 of the US Trade Expansion Act. This policy triggered global trade frictions.

Section 232: Section 232 of the US Trade Expansion Act stipulates that when foreign product imports threaten US national security, the President has the authority to adjust import tariffs or implement quantitative restrictions and other measures. This section was frequently used by the Trump administration to impose tariffs on imported steel, aluminum, and their derivative products.

On June 3, 2025: President Trump issued Proclamation 10947, adjusting the Section 232 tariff rates for US aluminum and steel imports, imposing an additional 25% tariff on aluminum and steel imports and derivative aluminum and steel products, except for those from the UK. This increased the tariff imposition rate for steel, aluminum, and their derivatives under Section 232 from the original 25% to 50%.

On June 13, 2025: The US Department of Commerce announced amendments to Annex 1 of Proclamation 10896, adding additional steel derivative products under Section 232, such as refrigerator freezers, dryers, washing machines, dishwashers, stoves/ranges/ovens, kitchen food waste disposers, and welded wire shelving. These products, which were not previously subject to Section 232 steel and aluminum tariffs, will be subject to a 50% tariff starting from June 23, 2025.

Starting from 12:01 AM on June 23, 2025, when Chinese enterprises export products listed on the export list to the US, the tariff imposition rate will change to 301 tariffs (ranging from 7.5% to 25%) + 20% IEEPA fentanyl tariffs + 50% (Section 232 steel derivative product tariffs - value content). Prior to this time point, the tariff imposition rate was 301 tariffs + 20% IEEPA fentanyl tariffs + reciprocal tariffs. Since products under Section 232 are not subject to additional reciprocal tariffs, the tariff structure changed after June 23.

SMM New Energy Industry Research Department

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lü 021-20707875

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Jie Wang 021-51595902

Yang Xu 021-51666760

Boling Chen 021-51666836