Section 232 Steel Tariffs Are Getting Results

COMMENTARY

The U.S. Supreme Court is currently hearing arguments on whether President Donald Trump has the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). One thing is clear, however: America needs trade tools that are effective and can advance the national and economic security interests of the United States.

That’s why the Section 232 steel tariffs—reimposed without exceptions or exemptions nine months ago, and strengthened in June to a 50% rate—deserve renewed appreciation. Rooted in the Trade Expansion Act of 1962, and reviewed by the Department of Commerce for national security purposes, Section 232 tariffs stand on firm legal ground. They’ve been tested, upheld, and proven to work.

A new report by the Coalition for a Prosperous America (CPA) shows why. Since these tariffs were introduced in 2018, they’ve revitalized U.S. steelmaking capacity—spurring 21 million metric tons of new or expanded investment. That’s the largest build-out in decades.

Significantly, the Section 232 tariffs did not fuel inflation. In fact, U.S. inflation remained below 2% prior to the COVID-19 pandemic. Further, the U.S. International Trade Commission found downstream price effects from the tariffs averaging just 0.2% annually—too small to influence consumer prices during that time.

It appears that the Trump Administration has learned from its past mistakes. It’s now limiting exemptions to the steel tariffs that had previously diluted their effectiveness. From 2019 to 2024, a flood of exemptions and tariff-rate quotas allowed as much as 72% of imported steel to enter the U.S. duty-free. That reduced the average effective rate of the steel tariffs to a mere 4 to 5%, and reopened the door to foreign dumping.

That has now been corrected. The administration’s current policy—with no exemptions, full 50% coverage, and the addition of steel derivative product coverage—has restored the effectiveness of these important trade measures. At the same time, capacity-utilization rates are once again nearing 80%.

The steel tariffs arrived at a critical juncture. The global steel industry continues to reel from chronic distortions. In fact, the CPA report documents 543 million metric tons of global steel overcapacity—nearly six times total U.S. output, with half of it coming from China alone. This steel glut continues to find outlets through trans-shipment hubs in Mexico, Vietnam and the European Union.

Without strong, universal enforcement, the United States will once again become the dumping ground of last resort. Section 232 tariffs on steel imports defend against that outcome—legally and effectively.

Steel tariffs have strengthened America’s industrial base, secured its defense supply chains and proven compatible with low inflation and strong job growth. Courts may debate the limits of presidential trade authority, but there’s no denying that Section 232 has been applied effectively in the steel sector.