Section 232 Steel Derivative and the Impact on Imported Hydraulic Cylinders

Question 1

What Changed?

Answer

The U.S. Department of Commerce expanded the Section 232 on August 15, 2025, to cover many downstream "derivative" products and raised the steel rate to 50%. For derivatives, that rate applies only to the value of the steel content in the article.

Question 2

Are Hydraulic Cylinders Included?

Answer

Yes. HTS 8412.21 (Hydraulic power engines and motors), Linear acting (cylinders) is now listed among the covered derivative products. All cylinders coming into the U.S are now subject to the 50% Section 232 Steel Derivative Tariff. This impacts any and all hydraulic cylinders being brought into the United States, regardless of Country of Origin, including both Canada and Mexico.

Federal Register

Question 3

Why are Prince Hydraulic Cylinders Not Subject to The 50% Section 232 Steel Derivative Duty?

Answer

Prince Hydraulic Cylinders are manufactured in the United States from U.S. melted & poured steel, which is specifically exempt from the steel derivative duty.

U.S. Customs and Border Protection

Question 4

Why are Prince Hydraulic Cylinders Not Subject to The 50% Section 232 Steel Derivative Duty?

Answer

Importers report the value of the steel content, and the Section 232 Derivative Duty is applied to that value (50% for steel derivatives is currently in effect). CBP has line-item reporting rules for the steel vs. non-steel portions.

U.S. Customs and Border Protection

Question 5

Real-world example:

Answer

Imported Cylinder: $250 total value.
Estimated Steel Content: $150
232 Derivative Duty: 50% x $150 = $75.00
With Prince: $0 in Section 232 duty on steel content.
At 400 cylinders per year, this amounts to an extra $30,000 in spend.