How Section 232 Tariffs Impact Freight Forwarders and Custom Brokers

In this article, we explore what Section 232 tariffs are and how they affect the day-to-day operations of forwarders and brokers. We’ll also look at how industry players are adapting and mitigating these tariffs’ impacts to keep trade moving.

Understanding Section 232 Tariffs

Section 232 of the Trade Expansion Act of 1962 gives the US President the power to impose import restrictions for national security reasons. In 2018, the US started using this law to add steep duties on steel and aluminum imports (initially 25% on steel and 10% on aluminum). Since then, these tariffs have collected billions in extra fees.

In 2025, the rules expanded again. Now, hundreds of products that contain steel or aluminum, like trailers, car parts, refrigerators, and washing machines, face a 50% tariff. Analysts estimate this sudden doubling adds about $50 billion in extra tariff costs, effectively doubling the financial impact that the earlier 25% rates had on businesses.

Are Section 232 Tariffs Still in Effect?

As of 2025, Section 232 measures are not only still in effect but have been expanded and increased under the current administration. 

Despite shifts in administrations, Section 232 duties have proven durable. The tariffs first imposed in 2018 remained largely intact through the Biden administration, and were even extended via quota agreements in some cases instead of being removed. Industry analysts note that these tariffs’ legal grounding in national security makes them harder to overturn in court, which has helped them survive multiple challenges and persist across presidencies.

New developments throughout the last few months suggest Section 232 duties will remain a favored policy tool for the foreseeable future. The Trump administration has capped certain national-security tariffs at new flat rates and launched fresh investigations into products like automobiles, auto parts, and critical minerals under the Section 232 statute, for example. 

For freight forwarders and customs brokers, this means the elevated tariff levels (e.g. 50% on many steel/aluminum goods) are likely the new normal. Barring new trade deals or diplomatic breakthroughs, importers and their logistics partners must operate on the assumption that these tariffs are here to stay. 

Effects on Freight Forwarders

For freight forwarders, whose core challenge is to get goods delivered on time and within budget, Section 232 tariffs have introduced costly complications. Those 50% duties, for example, can suddenly make a shipment prohibitively expensive or prompt last-minute reroutings. Clients may cancel or delay shipments to avoid tariffs, leaving forwarders scrambling to adjust.

This means forwarders now have to put far more thought into route planning and pricing. Many are focusing on consolidating shipments, optimizing modes of transport, or using bonded facilities to reduce costs. 

Beyond routing, forwarders find themselves having to constantly update their internal systems and procedures. Constantly changing tariff rules affect how they quote prices, classify goods, and check where materials come from. Many companies are investing in staff training and compliance tools so that their teams can recognize which products fall under the updated Section 232 lists. With hundreds of new products added to the tariff list, staying up to date takes real effort.

Effects on Customs Brokers

Section 232 tariffs have also significantly increased the workload and complexity for customs brokers, whose job is to clear goods through customs compliance. A broker must ensure the correct duties are applied, and with Section 232 that task has grown more complicated in several ways.

Many of the items added in 2025 weren’t previously flagged as high-risk. Brokers now must look at whether a product contains any steel or aluminum, even if it’s not obvious, like in ovens, furniture parts, or electric tools. These may all carry the 50% tariff if they contain covered metals and come from non-exempt countries.

That means more paperwork, more coordination with clients, and more chances for error. Brokers must stay on top of product descriptions, supplier certifications, and country-of-origin details. They also advise importers on raising customs bond amounts to cover the higher duties, so goods don’t get stuck at the port.

Mitigating the Impact of Section 232 Tariffs

Businesses are using a mix of strategies to reduce the burden of Section 232 tariffs. One approach is to shift sourcing to countries that aren’t subject to the tariffs. That could mean buying from domestic suppliers or from countries with exemption agreements.

Another tactic is to use Foreign Trade Zones (FTZs) and bonded warehouses. In an FTZ, goods are considered outside U.S. customs territory. This means duties are deferred until the goods enter the market. If the rules change later, the lower duty rate from the time of entry into the FTZ may still apply. If the goods are re-exported, no duty is paid at all.

Bonded warehouses offer similar benefits. They allow companies to store imported goods without paying duties upfront. Duties are only paid when the goods are removed for use. This can improve cash flow, especially when tariffs are high.

Forwarders and brokers are also updating contracts and quotes to reflect these tariff changes. Many now include clauses that spell out who pays duties or what happens if tariffs spike. This helps prevent misunderstandings and sets expectations with clients. Another way to get ahead is by using AI-powered compliance tools like Gaia Dynamics, which scans product descriptions and flags risks before customs filings.

Conclusion

Section 232 tariffs have changed how trade professionals operate. They’ve increased costs, added new paperwork, and forced businesses to rethink supply chains. But they’ve also created new roles for freight forwarders and customs brokers as advisors, not just service providers.

By staying current, using smart tools, and helping clients understand their options, brokers and forwarders can manage these challenges. Section 232 tariffs may be here to stay, but that doesn’t mean trade has to drastically slow down. With the right strategies, it’s still possible to move goods efficiently and stay compliant in a high-tariff world.

FAQs

Q: What are Section 232 tariffs? 

They are extra tariffs the U.S. applies to imports for national security reasons. They mostly affect steel, aluminum, and goods that contain these metals.

Q: Are Section 232 tariffs still in place in 2025? 

Yes. In fact, the tariffs have been expanded. Many products now carry a 50% duty.

Q: Who is affected by these tariffs? 

Importers, manufacturers, freight forwarders, and customs brokers. Anyone moving or clearing goods that contain steel or aluminum.

Q: How can businesses reduce the cost of these tariffs? 

By using Foreign Trade Zones, bonded warehouses, changing suppliers, or working with brokers who can identify tariff risks.

Q: Can Section 232 tariffs be combined with other tariffs? 

Yes. They are often added on top of regular import duties or Section 301 tariffs, increasing the total cost.

Q: Where can I get help? 

Trade experts like customs brokers or platforms like Gaia Dynamics can help assess your products and identify ways to manage tariffs and stay compliant.