You've probably noticed that the price of pretty much everything with a metal frame has been acting crazy lately. Honestly, if you're trying to run a shop or manage a construction site right now, it feels like the goalposts move every other Tuesday. We are well into 2026, and the drama surrounding aluminum and steel tariffs is still the elephant in the room for the American economy.
It’s not just "politics as usual." It’s your bottom line.
Back in early 2025, things took a sharp turn when the administration rolled back those cozy exemptions for places like Canada, Mexico, and the EU. Suddenly, that 25% duty was back on the menu for everyone. Then June 2025 hit, and for many, that number doubled to 50%. You read that right. Fifty percent.
What’s Actually Happening Right Now?
Basically, the U.S. is doubling down on Section 232 of the Trade Expansion Act of 1962. The logic is that relying on foreign metal is a national security risk. Whether you buy that or not, the result is that the "exclusion" process—where companies could beg for a hall pass if they couldn't find a specific metal in the States—is mostly a ghost town.
Current rates as of early 2026 are sitting at a staggering 50% for most global imports of steel and aluminum. There’s a lone exception for the United Kingdom, which has been hovering around 25% thanks to the "Economic Prosperity Deal" (EPD), but even that’s on thin ice depending on how compliance checks go this year.
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And if you’re importing anything with even a whiff of Russian origin? You’re looking at a 200% duty. That’s not a typo. It’s a "keep out" sign.
The Scrap Metal Twist Nobody Expected
Here’s something kinda weird: the tariffs created a massive glut in the U.S. scrap market. Because U.S. steel mills are cranking up their production to meet domestic demand—since importing is so expensive—they are eating up local ferrous scrap like crazy. According to recent data from Argus Media, U.S. mill utilization rates jumped above 79% last year.
This has created a "magnetic pull." Instead of shipping scrap metal overseas, dealers are selling it to American mills. This is actually one of the few things keeping a lid on domestic steel prices, preventing them from going completely through the roof, though they are still way higher than the global average. In fact, U.S. hot-rolled coil benchmarks have been hovering around $900 per ton, while the rest of the world is seeing prices closer to $450.
You’re basically paying double for the privilege of buying American.
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Why Your "Non-Metal" Products Are Getting Hit
This is the part that catches people off guard. The government didn't just stop at raw slabs of metal. They went after "derivatives."
If you’re importing:
- Bulldozer blades
- Airplane parts
- Ladders
- Kitchen cabinets with metal frames
- Even certain types of nails and staples
You're likely paying the 50% "Section 232 content line." Customs and Border Protection (CBP) has become incredibly aggressive about this. They are now using a "content-based" valuation. This means if you import a complex machine, you might have to break out the value of the steel components vs. the electronic components on your customs forms.
The steel part gets the 50% hit. The rest might get hit by the "Reciprocal Tariffs" or IEEPA duties that are currently being fought over in the Supreme Court. It's a paperwork nightmare.
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The Real-World Cost for Small Businesses
John Murphy over at the U.S. Chamber of Commerce has been pretty vocal about how this is "hollowing out" smaller manufacturers. If you’re a big auto manufacturer, you can maybe negotiate a deal or move a factory. If you’re a guy in Ohio making specialized heat exchangers, you’re just stuck with the bill.
For every one job created in a steel mill, there are roughly 80 jobs in downstream businesses that use that steel. Those 80 people are currently feeling the squeeze.
Let's look at the "melt and pour" rule. To get a 0% tariff, the metal has to be melted and poured (for steel) or smelted and cast (for aluminum) right here in the U.S. If you're importing a part made in Mexico using Canadian steel, you're likely paying the full 50% duty because it doesn't meet that strict U.S.-origin requirement.
What You Should Do About It
Wait-and-see isn't a strategy anymore. The Supreme Court is expected to rule soon on the IEEPA-based tariffs, but experts like those at Clyde & Co suggest that aluminum and steel tariffs under Section 232 are on much firmer legal ground. They aren't going away anytime soon.
- Audit Your Supply Chain Origin: Don't just look at where the part was finished. Ask your suppliers where the raw metal was "melted and poured." If it wasn't the U.S., you need to bake that 50% cost into your 2026-2027 pricing.
- Check Your HTS Codes: CBP is handing out maximum penalties for misclassification. If you’re trying to sneak a steel derivative in under a "plastic part" code, the fines will be much worse than the tariff.
- Explore the "UK Loophole": If you can source specific alloys from the United Kingdom, you might still snag the 25% rate instead of the 50% global rate, though you’ll need to move fast before that deal potentially changes.
- Leverage Scrap Prices: If you are a manufacturer that produces a lot of metal waste, your scrap is more valuable to domestic mills right now. Negotiate better rates with your scrap dealers to offset your raw material costs.
The landscape is messy. It's expensive. But the companies that are actually digging into the "melt and pour" certifications and adjusting their HTS classifications are the ones that are going to survive this trade cycle without going broke on customs duties.