The Trump administration has expanded the scope of Section 232 steel and aluminum tariffs, extending 50% duties to hundreds of new imports ranging from industrial machinery to everyday household appliances. The move, formalized in Customs and Border Protection (CBP) guidance, highlights Washington’s reliance on tariffs as both a trade and industrial policy tool, while raising the likelihood of higher consumer and manufacturing costs.
A Sweeping Expansion Across Sectors
CBP’s bulletin, effective August 18, lists new Harmonized Tariff Schedule codes that bring a wide array of products under Section 232 duties. Locomotives, motorcycles, truck trailers, and specific automotive parts now face the full 50% levy, as do common household appliances including refrigerators, dishwashers, ovens, washers, dryers, and microwaves.
The tariffs, first imposed in 2018 at 25% and later doubled under President Trump, were originally justified on national security grounds after a Commerce Department investigation. With the latest expansion, at least $320 billion in imports are now affected, according to Michigan State University professor Jason Miller, who warned that the broader coverage “will add more inflationary cost-push pressures” already visible in July’s Producer Price Index.
Although the majority of countries face the full 50% rate, the U.K. secured a reduced 25% tariff following trade deal provisions finalized in June. That arrangement establishes a tariff-rate quota for British steel and aluminum, offering some relief to U.K. exporters while keeping them inside the Section 232 regime.
Tariffs Ripple Through Supply Chains
The impact is expected to reach deep into supply chains. Industrial manufacturers face higher input costs on trailers and car parts, while retailers and appliance makers must decide whether to absorb or pass on the additional burden. Analysts note that the move effectively taxes not only raw metals but also downstream products, tightening cost structures at multiple points of production.
The administration has a track record of broadening coverage: earlier this year, empty aluminum cans and beer were added to the list of tariffed derivatives. Trade experts suggest copper could be next in line, given its critical role in energy infrastructure and electrification projects.
According to recent trade reports, U.S. importers have already been rerouting supply to minimize exposure, including greater reliance on Mexico and Canada, where integrated supply chains benefit from USMCA provisions. But as more downstream goods fall under Section 232, such workarounds are narrowing.
Beyond Cost: The Strategic Tradeoff
The expansion illustrates a larger strategic gamble. While tariffs are designed to boost domestic production and safeguard national security, they also risk reinforcing inflationary trends and adding friction to supply chains at a time when companies are already grappling with elevated logistics and labor costs. An overlooked consequence is that by targeting finished goods alongside raw inputs, the U.S. could unintentionally disadvantage domestic assemblers that rely on global parts sourcing, making them less competitive against rivals in markets without such duties.