US Tariffs on Metals in 2026: What Procurement Teams Need to Know

The current tariff landscape

The US tariff regime on metals has evolved significantly since the original Section 232 actions in 2018, with several rounds of adjustments through 2025 and into 2026. Here is where things stand for the metals most commonly purchased by manufacturing procurement teams:

• Steel: 25% tariff on most steel imports under Section 232. Applies broadly across product forms including raw, semi-finished, and many finished steel products.
• Aluminium: 25% base tariff under Section 232, with additional duties of up to 50% on certain product forms from specific countries of origin. The effective rate depends on the HS code classification and the country of manufacture.
• Copper: Semi-finished copper products now face tariffs of up to 50% under recent trade actions. Raw copper cathode remains at lower rates, creating a significant gap depending on product form.
• Titanium: 25% tariff on most titanium imports, with particular impact on aerospace supply chains that source titanium forgings and mill products from Russia and China.

Section 232 explained simply

Section 232 of the Trade Expansion Act of 1962 allows the President to impose tariffs on imports deemed a threat to national security. The argument for metal tariffs is that domestic steel and aluminium production capacity is strategically important, and that cheap imports were undermining the viability of US producers.

In practice, Section 232 tariffs function as a broad-based import duty on metal products. They apply regardless of the specific end use, so a bracket for a commercial building and a bracket for a military aircraft both face the same rate.

The tariffs are assessed on the declared value of the imported metal content, which is a critical distinction that many suppliers and buyers get wrong.

The key mistake: applying tariffs to the whole part

This is the single most common error in tariff-related pricing, and it costs buyers millions collectively.

When a supplier says "there is a 25% tariff on aluminium," they often apply that 25% to the entire part price. But Section 232 tariffs are assessed on the metal content, not the total value of a finished manufactured part.

Here is a concrete example:

• An aluminium bracket is quoted at $10.00 per unit.
• The aluminium content (raw material) is approximately 40% of the cost, or $4.00.
• The 25% tariff applies to the $4.00 metal content, not the $10.00 part price.
• Correct tariff impact: $4.00 x 25% = $1.00 per unit, or 10% of the total part price.
• Incorrect (but common) calculation: $10.00 x 25% = $2.50 per unit, or 25% of the total part price.

The difference is $1.50 per unit. At a quantity of 10,000 units, that is $15,000 in unnecessary cost from a single line item. Across a full BOM, the cumulative impact can be enormous.

How to verify: check the tariff code and product form

Proper tariff verification requires attention to three factors:

1. The HS code classification

Every imported product is classified under a Harmonised System (HS) code. The tariff rate depends on the specific code, not the general material. Aluminium ingot (7601) faces different rates than aluminium bars (7604), which face different rates than aluminium structures (7610). The classification determines whether Section 232 applies and at what rate.

2. The product form

Tariffs distinguish between raw metal, semi-finished products, and finished manufactured goods. A raw aluminium billet faces the full Section 232 rate. A finished aluminium bracket that has been machined, anodised, and assembled may qualify for a different classification with a lower or zero tariff rate, depending on the degree of transformation.

3. The country of origin

Country-specific additional duties can significantly change the effective rate. Chinese aluminium products, for example, face both Section 232 tariffs and additional Section 301 tariffs, potentially pushing the effective rate well above 25%. Products from countries with tariff exemptions or trade agreements may face reduced rates.

Tariffs in should-cost calculations

A proper should-cost model must account for tariffs correctly. This means:

• Applying tariffs only to the relevant metal content, not the total part value.
• Using the correct HS code for the specific product form being imported.
• Accounting for country-of-origin rules that determine the applicable rate.
• Separating tariff cost from other cost components so it can be verified independently.

SupplyVerse's Agent Midas handles this automatically. When building a should-cost model, Midas identifies the likely tariff classification based on the part type and material, applies the tariff to the metal content only, and shows the calculation transparently so both buyer and supplier can verify it.

What to watch for in 2026

The tariff landscape continues to evolve. Several developments are worth monitoring:

• Copper tariff expansion: Recent actions on semi-finished copper products are affecting electronics and industrial supply chains. The scope may widen further.
• Critical minerals provisions: Titanium and rare earth metals used in aerospace and defence are subject to ongoing policy review, with potential for both tightening and strategic exemptions.
• Reciprocal tariff adjustments: Trade negotiations with the EU and UK may result in modified rates for certain product categories.
• Circumvention enforcement: US Customs is increasing scrutiny of transhipment, where metal is routed through a third country to avoid the tariff. This affects sourcing decisions and supply chain transparency.

Practical steps for procurement teams

Regardless of how tariffs evolve, the fundamentals remain the same:

• Verify the HS code your supplier is using for each imported part.
• Separate the tariff line item in your cost breakdown so you can audit it independently.
• Apply tariffs to metal content only, not to the total part price.
• Track the country of origin and understand which additional duties apply.
• Use automated tools like SupplyVerse to ensure tariff calculations are current and correct.

Getting tariffs right is not optional. It is one of the simplest ways to avoid unnecessary cost, and one of the most common areas where procurement teams overpay.