Tariff Tension Returns: Commerce Proposes New Duties on Building Materials

In a move with far-reaching implications for the U.S. construction industry, the Department of Commerce’s Bureau of Industry and Security has initiated the first formal process to broaden the scope of the 25% Section 232 tariffs currently applied to imported steel and aluminum. On May 21, 2025, BIS published the initial list of inclusion requests for public comment, targeting products widely used in infrastructure, oil and gas, and commercial development.

The inclusion window is narrow. Stakeholders, including builders, material suppliers, contractors, and trade associations, have until Wednesday, June 4, 2025, to submit their feedback. If approved, the new duties could significantly alter material pricing and availability across multiple sectors.

Section 232: National Security Meets International Trade

Section 232 of the Trade Expansion Act of 1962 authorizes the U.S. government to investigate and respond to import levels that may threaten national security. Based on this statute, former President Donald Trump implemented duties on imported steel and aluminum in 2018. The argument: global oversupply, particularly from China, undermined domestic production essential for defense and critical infrastructure.

In February 2025, through Proclamations 10895 (aluminum) and 10896 (steel), President Trump significantly expanded these tariffs. The new actions:

• Increased the aluminum duty to 25%, matching the existing steel rate

• Removed country-specific exemptions, effective March 12, 2025

• Ended the previous exclusion process for businesses

• Created a new mechanism for domestic producers to request additional derivative products for tariff inclusion

It is under this final mechanism that the current round of inclusion requests has emerged.

The Products Under Consideration

The inclusion requests under review target several high-use construction and industrial components. These include:

• Structural steel, used in buildings, bridges, and infrastructure

• Raw billet steel, a semi-finished product for re-rolling

• Drill pipe and tubing, vital for oil and gas extraction

• Aluminum cable and wire, used in electrical and communications systems

• Air compressors, commonly used across construction and industrial sites

If these materials are brought within the tariff scope, imports of these goods will face a 25% duty, directly affecting costs for contractors, equipment suppliers, and project owners.

Impact on Construction & Infrastructure Sectors

The construction sector is bracing for possible ripple effects. Industry experts warn that adding tariffs to these materials could drive up costs, cause bidding delays, and destabilize procurement planning.

For example, drill pipes are essential in energy infrastructure, particularly shale gas projects. Aluminum cable is critical for modern electrical and telecom installations. Raw billet steel feeds domestic re-rolling mills, raising concerns that tariffs could ironically raise prices for U.S. downstream processors.

Trade associations including the Associated General Contractors of America, National Association of Home Builders, and the American Institute of Architects have advised their members to review the published requests.

Short Comment Window Heightens Urgency

The May 21 notice opened the floor for public input, but with an unusually short response window: comments must be submitted by June 4, 2025. Public submissions can be filed via the federal portal at regulations.gov, referencing the inclusion request docket.

Each request will be evaluated using two criteria:

1.  Whether the item is a derivative of a steel or aluminum article

2.  Whether imports of that item have increased in a way that undermines national security or the objectives of prior Section 232 measures

Legal experts and trade consultants are advising affected firms to submit robust, data-driven responses. For example, showing that no domestic substitute exists, or that tariffs would disrupt major public infrastructure projects, may influence BIS determinations.

Court Ruling Doesn’t Apply to Section 232

Complicating public understanding is a recent legal development. On May 28, 2025, the U.S. Court of International Trade enjoined several tariff measures enacted under a different authority, the International Emergency Economic Powers Act.

However, BIS clarified that Section 232 duties, and the inclusion request process, are legally separate and unaffected by the court’s ruling. Therefore, this inclusion process proceeds independently. Approved requests will result in immediate 25% duties on the relevant articles, irrespective of litigation under other trade statutes.

What Happens after June 4?

Following the close of the comment window, BIS will assess each inclusion request and issue a formal determination by July 20, 2025. Each decision will be accompanied by a public memorandum explaining whether the proposed article meets the criteria for tariff coverage.

The impact of these decisions may stretch beyond the immediate products at issue. Industry watchers say that if BIS sets a precedent by approving tariffs on widely-used construction inputs, it could pave the way for even broader duties in future inclusion rounds.

In anticipation, several trade groups are preparing collective submissions. Meanwhile, legal and economic advisors are assisting companies in documenting potential disruptions, such as increases in contract costs, lack of domestic supply, or critical project delays.

Key Takeaways

• U.S. Commerce Department may apply 25% Section 232 tariffs to additional construction materials like structural steel, aluminum wire, and drill pipe.

• Public comments on these proposed inclusions must be submitted by June 4, 2025, with final decisions expected by July 20.

• Industry groups warn that expanded tariffs could drive up construction costs and disrupt infrastructure projects nationwide.