AISC
Tariffs
Tariff Impacts on Structural Steel Markets
The Department of Commerce recommended the Section 232 tariff back in 2017, at the conclusion of a nine-month investigation into the effects of imported steel on national security. Based on its findings, Commerce recommended a 24% tariff on a wide range of steel products that would affect many industries, not just construction. On March 1, 2018, the President announced his intention to impose a 25% tariff. He implemented those tariffs in an executive order on March 23, 2018.
A 25% tariff on imported steel mill material does not equate to 25% increase in the overall cost of a project. The cost of material is just one of several components in the cost of a steel structure. In fact, because material is less than one-third of the cost of the building’s framing system, and the frame is around 12% of the project cost, a 5% increase in the price of steel represents less than one-fifth of 1% of the total project cost.
The precise impact of a tariff on steel projects is top-of-mind for a lot of people, but there is no one-size-fits-all answer. The impact will vary by project. AISC is never involved in individual pricing decisions and has no control over marketplace pricing. Engineers and contractors with specific pricing questions should contact an AISC Member Fabricator to discuss individual projects.
The cost of steel construction is responsive to market forces, and the structural steel industry operates in a competitive environment. AISC has long believed that the best way to increase the utilization of domestic steel is to increase the size of the market. We continue to support market-building activities that keep domestically produced and fabricated structural steel the material of choice for America's great buildings, bridges, and infrastructure projects.
SECTION 232
Background
Section 232 tariffs were put in place on March 23, 2018, to protect national security interests related to the American steel industry because steel is integral to critical infrastructure, such as bridges and power plants. At that time, these protections only applied to mill steel, not fabricated structural steel.
The big picture
There is still a 25% tariff on steel mill material coming into the U.S. However, on February 10, 2025, the White House released a presidential action entitled Adjusting Imports of Steel Into the United States that added fabricated structural steel as a protected downstream derivative product. The current 232 tariffs cover the following steel products:
- Long products such as bars, rails, rods, and structural shapes
- Pipe and tube products that are either seamless or welded
- Flat products like sheets, strips, and plates
- Concrete reinforcing bar (rebar)
- Fabricated structural steel unless the steel used is melted and poured in the United States.
Section 232 tariffs have historically been effective at curbing imports of mill material. But foreign countries have found other ways to bring that steel into the United States, specifically in the form of fabricated steel assemblies. Ultimately, by leaving fabricated structural steel off of the tariff list, the Administration created a loophole allowing foreign fabricators to buy tariff-free steel, fabricate it, and ship it into the United States without penalty, circumventing the U.S. trade policy that was put in place to strengthen the domestic steel industry, not weaken it. The current status of these Section 232 tariffs do a much better job of protecting U.S. fabricators. AISC continues to work with the Administration to strengthen these trade actions.
Section 301 tariffs also apply to fabricated structural steel imported from China.
SECTION 301
As of March 2022, all fabricated structural steel imported from China is still subject to a 25% tariff upon import to the U.S.
Background
The U.S. imposed Section 301 tariffs on a broad array of Chinese products, including fabricated structural steel, in response to an unfair Chinese trade policy that forces foreign companies to disclose intellectual property to access the Chinese market. Chinese fabricated structural steel has been subject to a 25% tariff since August 23, 2018. This is the first time that the parts of the Section 301 tariff list that are relevant to our industry have extended beyond raw steel mill products.
It's important to remember that fabricated structural steel is just a minute portion of the overall scope of Section 301 tariffs.
How we got here
In 2018, two AISC board members testified before the U.S. Trade Representative Section 301 Committee in Washington, D.C., on behalf of the fabricated structural steel industry. Jeffrey Sterner, president and chief operating officer of High Industries in Lancaster, Pa. (an AISC member and certified fabricator and erector), and David Zalesne, chairman of AISC and president of Owen Steel Company in Columbia, S.C. (an AISC member and certified fabricator) supported applying 25% duties under Section 301 of the Trade Act.
In a statement, AISC President Charles J. Carter, SE, PE, PhD, said "On behalf of AISC and the American structural steel industry, we appreciate USTR's willingness to listen, and commend the USTR for including fabricated steel tariff codes on the current list for action under Section 301. This is a very positive step toward protecting downstream users that have been left exposed to foreign fabricators circumventing current 232 trade actions."
Additional information about Section 301 tariffs can be found below:
In March 2022, the Office of the U.S. Trade Representative declined to reinstate exclusions for five Chinese fabricated steel products that had previously been exempted from the 25% tariff:
- Girders of iron or steel, meeting ASTM standard A572, Grades 50, 65, or 70 (HTS 7308.90.3000)
- Pipes of iron or steel, with connectors, meeting ASTM standard A572, Grade 50 (HTS 7308.90.3000)
- Posts of steel pipe and tube, with ball knobs attached (HTS 7308.90.3000)
- Posts of steel pipe and tube, with sill plates and ball studs attached (HTS 7308.90.3000)
- Rib nodes of iron or steel, meeting ASTM standard A572, Grades 50, 65, or 70 (HTS 7308.90.3000)
AISC had formally objected to these five exclusions when the USTR solicited comments in October 2021.
AISC Director of Government Relations and Sustainability Max Puchtel is a great resource for any questions about tariffs.