What it is
Section 232 tariffs are trade barriers authorized by Section 232 of the Trade Expansion Act of 1962. This law permits the U.S. President to impose tariffs or other import restrictions if the Commerce Department finds that imports of a specific article threaten national security. The President has broad discretion in determining the scope and duration of these measures. These tariffs are often applied to foundational industries like steel and aluminum, based on the argument that domestic production capacity is vital for defense and critical infrastructure.
These tariffs frequently appear in news when the U.S. initiates investigations into imports of certain goods, or when new duties are announced. For example, steel and aluminum imports from various countries have faced Section 232 tariffs, leading to higher prices for importers and domestic consumers of those materials. Affected countries often respond with retaliatory tariffs, escalating trade tensions. Businesses track these developments to anticipate changes in input costs, supply chain disruptions, and potential trade war scenarios that impact global trade volumes.
Why it matters
Section 232 tariffs can raise costs for companies using imported materials, affecting their profitability and stock prices. They can also trigger retaliatory tariffs, impacting export-oriented businesses.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice