Common questions about construction material tariffs, HTS codes, and how to protect your bids from duty exposure.
What is Section 232 and why does it matter for construction?
Section 232 is a national security tariff authority established under the Trade Expansion Act of 1962. It allows the president to restrict imports that threaten national security. In 2018, the Trump administration invoked Section 232 to impose 25% tariffs on all imported steel and 10% tariffs on imported aluminum from most countries, citing the decline of domestic steel capacity. By 2026, aluminum tariffs were increased to 10–50% depending on country. For construction, this is the single most significant tariff measure — it applies to virtually all structural steel, rebar, pipe, plate, sheet, tube, and aluminum products. Unlike normal trade duties, Section 232 applies to nearly all countries including US treaty partners such as Canada and the EU.
What construction materials face 25% tariffs in 2026?
Under Section 232, all imported structural steel products face a 25% tariff from most countries. This includes hot-rolled coil and plate, wide-flange beams and columns, rebar and wire rod, steel pipe and tube, steel decking, steel studs, steel angles and channels, and steel electrical conduit (EMT). Aluminum products — including sheet, plate, extrusions, and aluminum conduit — face 10% from most countries and up to 50% from China. Additionally, Chinese-origin goods including copper wire, copper pipe, switchgear, panel boards, HVAC equipment, PVC pipe, OSB, plywood, glass, and ceramic tile face 25% Section 301 tariffs.
Are Canadian materials subject to tariffs despite USMCA?
Yes, and this surprises many contractors. Despite USMCA replacing NAFTA, Canada is fully subject to Section 232 tariffs on steel and aluminum — 25% on steel and 10% on aluminum as of 2026. USMCA does not override Section 232 because those tariffs are imposed under a separate national security authority, not under normal trade law. Canadian softwood lumber is additionally subject to anti-dumping and countervailing duties averaging 14.5% that have been in place since 2017 and are separate from USMCA. The practical upshot: if your material is imported from Canada, steel and aluminum still carry 25% and 10% tariffs respectively, and lumber carries an additional 14.5% duty.
How do USMCA exemptions actually work for construction materials?
USMCA exemptions apply to goods that meet specific rules-of-origin requirements — generally meaning the product was substantially manufactured in the US, Canada, or Mexico. For most general merchandise, USMCA eliminates tariffs between the three countries. However, USMCA provides no relief from Section 232 steel and aluminum tariffs, Section 301 China tariffs (which apply regardless of country of transit), or AD/CVD duties on lumber. The exemption is most useful for construction materials that are neither steel, aluminum, nor subject to AD/CVD — such as some electrical components, mechanical equipment, or specialty materials where the goods genuinely originate in Canada or Mexico. Always verify rules-of-origin carefully; simply purchasing through a Canadian distributor does not make a Chinese-made product USMCA-eligible.
What is an HTS code and how do I find the right one?
HTS stands for Harmonized Tariff Schedule. It is a 10-digit numerical classification system used by US Customs and Border Protection to categorize every imported good. The first 6 digits are internationally standardized under the global Harmonized System (HS) and are the same across most countries. The last 4 digits are US-specific and determine the precise duty rate. To find the correct HTS code, start with the USITC HTS Search at hts.usitc.gov, or use the search tool on this page for common construction materials. Correct HTS classification is critical — misclassification can result in underpaid or overpaid duties, CBP penalties, or delays at the border. For large orders, a licensed customs broker should confirm the classification.
Does Trueleveler flag tariff exposure automatically in contracts?
Yes. Trueleveler's Contract Review engine analyzes construction contracts, subcontracts, and purchase orders and flags tariff-related language gaps in seconds. It identifies missing tariff escalation clauses, subcontractor agreements that don't address duty exposure, fixed-price supplier terms that leave you holding the bag if tariffs increase, and references to imported materials without appropriate contingency language. The engine highlights these gaps with suggested clause improvements so you can negotiate better terms before signing. Tariff exposure is one of the most commonly missed risks in construction contracts — Trueleveler makes it visible before it becomes a budget problem.
