Update on inclusion requests pertaining to Section 232 tariffs on steel and aluminum
Section 232 tariffs on steel and aluminum have been in effect since 2018, during the first Trump administration. Until recently, importers had been able to file exclusion requests at the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), to request exemption from the Section 232 tariffs on steel and aluminum. On June 4, President Trump doubled the Section 232 tariff rates on imports of steel and aluminum, and their derivatives, from 25% to 50%.
The Pivot from Exclusion Requests to Inclusion Requests
In February, President Trump announced his intent to terminate the Section 232 exclusion process, which has since been allowed to expire. President Trump’s February 2025 announcement also extended the application of Section 232 tariffs on steel and aluminum to include additional downstream, or “derivative,” products. President Trump’s February 2025 executive orders and subsequent presidential proclamations concerning steel and aluminum listed specific products by HTSUS number that the administration considers to be a derivative of steel or aluminum and, thus, subject to Section 232 tariffs.
On April 30, the BIS issued an interim final rule establishing an inclusion process, which allows applicants to request the addition of new products to the list of steel and aluminum derivative products subject to Section 232 tariffs. The Trump administration’s pivot from an exclusion process to an inclusion process marks its evolving and aggressive use of Section 232 tariffs to reshape the steel and aluminum trade landscape.
The BIS’s steel and aluminum inclusion process is expected to accept inclusion requests three times per year, during two-week windows in May, September, and January. Within 60 days of receiving an inclusion request, BIS will review each request and issue a positive or negative determination for each request. When BIS issues a positive determination to include additional products in the list of steel and aluminum derivatives, a Federal Register notice will be published to add the new derivative products and to modify the HTSUS accordingly. Duties on newly included derivative products are expected to take effect shortly after notification in the Federal Register.
Insights to the First Inclusion Request Process
Today, July 14, marks 60 days from the close of the first inclusion request window. Accordingly, Clark Hill anticipates that BIS will release public notices shortly indicating its decisions on the first round of Section 232 inclusion requests.
The first opportunity to request Section 232 steel and aluminum inclusions occurred from May 1 – May 14. At the close of the two-week request period, BIS published public versions of all valid requests on https://regulations.gov and allowed members of the public a two-week opportunity to comment on the inclusion requests. The BIS’ determinations on these first round of inclusion requests are expected to shed additional insight into the administration’s application of Section 232 tariffs going forward.
On Aug.19, the BIS published its first round of inclusions to the Section 232 steel and aluminum derivatives in the Federal Register.
Next Steps
Participants throughout the steel and aluminum supply chains should remain cognizant of changes to the Section 232 tariffs and should anticipate additions to the derivative list three times per year, following the inclusion request windows. All participants in the supply chain, whether importers, producers, or downstream purchasers, may benefit from proactively monitoring and engaging with the BIS inclusion process to strategically support the best interests of your business.
The next inclusion request window will open on Sept. 1, and close on Sept. 14.
For additional information about recently included derivative products, or to learn how participating in a future inclusion process can benefit your business, please contact Clark Hill’s international trade practice.
Contact Clark Hill
If you have any questions regarding the content of this alert, please contact Mark Ludwikowski (mludwikowski@clarkhill.com; 202-640-6680), Kevin Williams (kwilliams@clarkhill.com; 312-985-5907), Aristeo Lopez (alopez@clarkhill.com; 202-552-2366), Kelsey Christensen (kchristensen@clarkhill.com; 202-640-6670), or other members of Clark Hill’s International Trade Business Unit.
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