From 18 August 2025, the United States expands Section 232 tariffs to 407 steel- and aluminium-derived products, imposing a 50% duty with no transit relief.
The U.S. expansion of Section 232 tariffs to include 407 steel- and aluminium-derived products has the potential to disrupt project cargo and heavy-lift exports, industry observers warn. The additions, which take effect at 12:01 a.m. Eastern Time on 18 August 2025, impose a 50% duty assessed on the steel or aluminium content of listed items. There is no transit exemption and duties apply to entries made after the effective time. In practice, the importer of record at U.S. customs entry—typically the U.S. buyer or their broker—bears responsibility for paying the tariff, and projects that did not account for the increased cost risk delays and associated charges if duties cannot be settled promptly.
The expanded list covers numerous products used in project cargo movements, including large energy equipment (for example wind-turbine components and large transformers), heavy lifting and handling machinery (such as tower cranes and parts), earthmoving and construction machinery (bulldozers, excavators), rail rolling stock and related components (locomotives, freight and passenger cars, bogies, axles), special vehicles and trailers (heavy semi-trailers and low-beds), and certain industrial furnaces and ovens. Industry advisers and consultancy firms have noted that the change could raise import costs for companies in construction, logistics and manufacturing, prompting consideration of supply-chain adjustments or alternative sourcing.
U.S. authorities have framed the move as an effort to broaden the tariff net and limit circumvention, while government guidance has focused on the new HTSUS codes and tariff classifications needed for correct customs entry. Several sources stress there is no retroactive relief for goods already in transit or entered before the effective time. The Bureau of Industry and Security (BIS) led the inclusion process for the added codes, and observers note further inclusion rounds are anticipated.
For project cargo practitioners, the immediate implications are practical: higher landed costs at U.S. entry, potential renegotiations of fixed-price or milestone contracts, and an elevated risk of detentions, demurrage and inland delays when duties are unanticipated. Firms are already reviewing supplier footprints, reassessing sourcing where feasible, and emphasising accurate tariff classification and customs compliance to avoid clearance problems.
The expansion also occurs against a backdrop of heightened trade tensions; the EU has signalled retaliatory measures on certain U.S. oversized goods, and commentators warn that reciprocal actions and ongoing friction add further uncertainty for international project supply chains.
In summary: 407 HTSUS codes were added to the Section 232 list, a 50% duty on steel/aluminium content applies from 18 August 2025 with no transit relief, importers of record are liable at entry, and the change creates immediate cost and scheduling risks for project-cargo operations that must be managed through sourcing, contracting and customs classification steps.
Source: Noah Wire Services
