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Section 232 steel and aluminum tariffs effective; Canada and EU retaliate

12 March 2025 · written 8 June 2026

At 12:01 a.m. EDT on 12 March 2025 the Section 232 duties under Proclamation 10895 (“Adjusting Imports of Aluminum Into the United States”) and Proclamation 10896 (“Adjusting Imports of Steel Into the United States”) — both signed 10 February 2025 — took effect, raising the aluminum duty from 10 per cent to 25 per cent, reaffirming the 25 per cent steel duty and terminating the country-specific exemption and tariff-rate quota arrangements that had been built up with Argentina, Australia, Brazil, Canada, the European Union, Japan, Mexico, South Korea and the United Kingdom between March 2018 and 2024.12 Canadian Finance Minister Dominic LeBlanc announced 25 per cent retaliatory tariffs on CAD 29.8 billion of US goods, effective 12:01 a.m. EDT on 13 March 2025, calling the US action “unjustified and unjustifiable” and noting that the new package is in addition to the CAD 30 billion in Canadian tariffs already imposed on 4 March 2025 in response to the IEEPA fentanyl tariffs.34 The European Commission announced a two-step response under Regulation (EU) 654/2014: reinstatement of Commission Implementing Regulation (EU) 2018/886 (the 2018 rebalancing list) on up to €6 billion of US exports, effective 1 April 2025; followed by new countermeasures on approximately €18 billion of US exports in mid-April — a combined package of approximately €26 billion.56 United Kingdom Prime Minister Keir Starmer declined to retaliate on the day; Australia’s request for an exemption was denied; Canada requested WTO consultations the same day in dispute DS635.789

  1. US importers pay the additional duty on entry under HTSUS Chapter 99 subchapter III subheadings 9903.81.87 through 9903.81.93 (steel) and 9903.85.02 through 9903.85.08 (aluminum), per the Commerce Department implementation notices published 5 March 2025.1011 Goods entered before 12:01 a.m. EDT on 12 March 2025 cleared at the prior rate; goods entered on or after that time carry the full 25 per cent.

  2. Canadian retaliation is structured under the Customs Tariff (Canada), S.C. 1997, c. 36, and applies on entry of designated US-origin goods. The country-by-country mechanism is identical to ordinary import duties.12

  3. The EU package operates in two legal channels: reinstatement under Implementing Regulation (EU) 2018/886 (the 2018 list, whose suspension lapses on 1 April), and new measures adopted under Regulation (EU) 654/2014 on the exercise of Union rights under international trade rules.613

Footnotes

  1. Proclamation 10895, “Adjusting Imports of Aluminum Into the United States,” 90 Fed. Reg. 9807 (Feb. 18, 2025) (FR Doc. 2025-02832). https://www.federalregister.gov/documents/2025/02/18/2025-02832/adjusting-imports-of-aluminum-into-the-united-states ↩

  2. Proclamation 10896, “Adjusting Imports of Steel Into the United States,” 90 Fed. Reg. 9817 (Feb. 18, 2025) (FR Doc. 2025-02833). https://www.federalregister.gov/documents/2025/02/18/2025-02833/adjusting-imports-of-steel-into-the-united-states ↩

  3. Government of Canada, Department of Finance, “Canada responds to unjustified U.S. tariffs on Canadian steel and aluminum products,” 12 March 2025. https://www.canada.ca/en/department-finance/news/2025/03/canada-responds-to-unjustified-us-tariffs-on-canadian-steel-and-aluminum-products.html ↩

  4. Government of Canada, Department of Finance, “Canada’s response to U.S. tariffs on Canadian goods,” 4 March 2025 (CAD 30 billion initial Canadian tariffs imposed under the IEEPA fentanyl track). https://www.canada.ca/en/department-finance/news/2025/03/canadas-response-to-us-tariffs-on-canadian-goods.html ↩

  5. European Commission, “EU countermeasures on US steel and aluminium tariffs explained,” QANDA/25/750, 12 March 2025. https://ec.europa.eu/commission/presscorner/detail/en/qanda_25_750 ↩

  6. Commission Implementing Regulation (EU) 2018/886 of 20 June 2018 (the 2018 EU rebalancing list). https://eur-lex.europa.eu/eli/reg_impl/2018/886/oj ↩ ↩2

  7. UK Prime Minister’s Office, statement on US Section 232 tariffs, 12 March 2025 (declining to retaliate immediately). ↩

  8. Statement of Prime Minister Anthony Albanese on US Section 232 tariffs, 12 March 2025 (Australia’s exemption request denied). ↩

  9. World Trade Organization, United States — Tariff Measures on Imports of Steel and Aluminium Products, DS635 (request for consultations by Canada, 12 March 2025). https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds635_e.htm ↩

  10. U.S. Department of Commerce, “Implementation of Duties on Steel Pursuant to Proclamation 10896,” 90 Fed. Reg. 11463 (Mar. 5, 2025) (FR Doc. 2025-03598). https://www.federalregister.gov/documents/2025/03/05/2025-03598/implementation-of-duties-on-steel-pursuant-to-proclamation-10896-adjusting-imports-of-steel-into-the ↩

  11. U.S. Department of Commerce, “Implementation of Duties on Aluminum Pursuant to Proclamation 10895,” 90 Fed. Reg. 11453 (Mar. 5, 2025) (FR Doc. 2025-03596). https://www.federalregister.gov/documents/2025/03/05/2025-03596/implementation-of-duties-on-aluminum-pursuant-to-proclamation-10895-adjusting-imports-of-aluminum ↩

  12. Customs Tariff (Canada), S.C. 1997, c. 36. https://laws-lois.justice.gc.ca/eng/acts/C-54.011/ ↩

  13. Regulation (EU) No 654/2014 of the European Parliament and of the Council. https://eur-lex.europa.eu/eli/reg/2014/654/oj ↩

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