2025 was a year during which importers began to accept the reality of steep Section 232 or commodity-specific tariffs. The 232 tariffs on steel, aluminum, and copper in particular hit importers hard. Now at a tariff rate of 50% importers are constantly seeking ways to save money on 232 duties while still ensuring they meet CBP’s regulatory requirements.
CBP’s Base Metals Center of Excellence recently issued revised guidance on Section 232 valuation, placing even more pressure on importers and confusing an already convoluted framework. And that revised guidance has been quickly followed by a substantial increase in the pace of CBP inquiries into metal valuation. Let’s take a look at how you can avoid CBP scrutiny amidst all this confusion, ways you can compliantly save on 232 tariffs, and what the future may hold for these tariffs in 2026.
First, Staying Compliant With CBP’s Recently Revised Guidance
CBP’s recently revised guidance on metals 232 tariffs has impacted importers who are scrambling to understand its impacts and ensure compliance. Here are the key elements to embed in your compliance program to avoid scrutiny by CBP:
Key valuation rules for Section 232 tariffs
- Products that are wholly of steel, aluminum or copper are subject to 232 tariffs on 100% of the imported value of the product. No processing, manufacturing, or other costs can be deducted from the import value.
- Non-metal derivative component costs may be deducted from the value declared for 232 tariff calculations for products that are not wholly of steel, aluminum, or copper. Remember that the non-metal component cost is now subject to the applicable Section 122 tariff rate (now at 10%).
- Importantly, the value basis for the 232 tariffs is now the imported value, and not the acquisition cost of the metal components.
CBP scrutiny and documentation requirements
A recent flurry of Requests for Information (CF28’s) from CBP are asking importers to prove the value declared for the 232 tariff calculation.
They are asking for detailed records from the importer’s supplier, including purchase orders, payment records, manufacturing records, transportation records (including proof of receipt prior to production), product specs and photos, and more.
If the records cannot be provided to prove the valuation is accurate, CBP is quickly moving to a Notice of Action (CF29s) to apply the 232 duty on the full value of the product. Take the necessary steps today to ensure you are ready to comply.
A Look at Ways to Save on 232 Tariffs
Check tariff stacking and entry accuracy
1.) The new Section 122 tariff does not stack on 232 tariffs. With the recent Supreme Court decision on IEEPA tariffs and the implementation of the new Section 122 10% tariff (which could be increased to 15%), many importers are unsure of the impact on their Section 232 entries. Very simply, the new Section 122 tariff does not stack on top of 232 tariffs.
Customs’ ACE system and Customs brokers’ software will need to be reprogrammed, however, to manage the new tariff. To ensure you are paying the lowest compliant duty rate on 232 entries, be sure to audit at least the first few Section 122 entries from your broker to confirm the Section 122 tariff has not stacked on top of your 232 metals tariff. If there’s a mistake in the entry, the broker can correct it before duties are paid.
2.) It’s not too late to fix older entries, too. Because of the complexity and number of tariff changes during the last year, many importers find errors when auditing past entries as their broker’s software often couldn’t keep up with the pace of change. Take some time to audit your entries back to their first implementation in March of 2025.
If you don’t have time to audit them yourself, hire a trade expert to help. Many importers find that the reciprocal tariffs were improperly paid on top of the 232 tariffs. And remember that before June of 2025, if any 232 tariff was paid on any entry line, the entire entry line value (metal and non-metal value) was exempt from reciprocal tariffs. After June, only the value subject to the 232 tariff is exempt.
3.) Be sure to check the stacking logic, too. Before June of 2025, Mexico and Canada IEEPA tariffs were paid first before the 232 tariffs. After June, the stacking logic flipped with 232 tariffs being paid first. In either case, both IEEPA and 232 tariffs should not be paid on the same entry line.
Be sure IEEPA tariffs (except the China IEEPA tariff) were not stacked on top of 232’s. The copper 232 tariff went into effect in August of 2025. The same rules apply to copper, too.
Review valuation and documentation opportunities
4.) Take all compliant valuation deductions. As we noted in the section above, the 232 tariffs apply only to the compliantly-declared metal value of your product. If you discover values were overdeclared on prior entries, you can correct those values through PSC’s or protests to lower your duty obligation and claim back refunds. Be prepared to defend the values you claim in those corrections!
5.) Check the country of origin of your metal. In some cases, importers may have been unable to prove the metal was of U.S. origin at time of entry. Or they may have lacked the records necessary to declare the metal origin for aluminum products which subjected them to the 200% Russia tariff rate.
There’s also a reduced 232 rate on metals from the U.K. If you were unable to prove the metal origin at the time of entry but have compliant documentation to prove origin for those entries now, be sure to apply for refunds through PSC’s or protests.
6.) If you find an error and your entry has not yet liquidated, you can ask your broker to file a PSC to claim back your refund (be sure you have your ACH Refund Account set up in ACE so the refund is not delayed). If the entry liquidated you have up to 180 days to protest the error and claim back your refund.
What’s in store for 232 steel, aluminum and copper tariffs in 2026?
Potential tariff reductions and policy changes
Recently, the media reported rumors of a “reduction” in the steel and aluminum tariffs by the Administration in response to concerns about inflation and affordability ahead of the mid-term elections.
Members of the Administration have hinted that they may be willing to ease the compliance burden associated with these tariffs.
As of this writing, however, nothing official has been released by the Administration about when and how the reduction or easing might happen, so importers should plan on the status quo at least in the near term.
What is clear, however, is that there appears to be an unofficial hold on the “inclusion” process that would add more tariff codes to the lists of covered products.
Sources inside the Administration indicate there are concerns about the lack of limits on the additions, and those concerns may be the reason why the last batch of potential additions were never implemented well past the Administration’s self-imposed deadline.
Legal challenge to CBP’s 232 valuation guidance
One important development to watch is the recent legal challenge by Express Fasteners Ltd. in the Court of International Trade (CIT) to contest CBP’s shift in valuation guidance for 232 tariffs.
They allege that the Center that issued the guidance does not have the authority to change the language in the original Executive Order and previous guidance and FAQ’s issued by CBP Headquarters.
This is an important case for impacted importers. Some Customs attorneys are recommending importers file protests on steel, aluminum and copper entries to preserve their right to a refund on overvaluation should the CIT find in favor of the plaintiff in this case.
Notably, CBP has recently refused to issue any further rulings on pending steel, aluminum, and copper valuation ruling requests pending this litigation, placing even more importance on the outcome of this case.
Stay Compliant, Stay Current & Audit
No one can say with certainty exactly how Section 232 tariff policy will evolve in 2026. But you can protect your business by staying compliant with recent CBP guidance, staying current with trade policy actions, and auditing entries to ensure you are paying the lowest possible compliant duties.
By partnering with trade policy and Customs compliance experts, U.S. importers can turn uncertainty into a manageable, and even strategic advantage.
Position your business for success by following the guidelines we’ve outlined here, aligning with the right experts to help ensure you are not overpaying duties and getting the right information at the right time to stay ahead in this increasingly unpredictable trade policy landscape.
To discuss how Dimerco can help you navigate Section 232 compliance and the evolving trade policy environment, contact us today to start a discussion.
