Where Relief Lands and Where It Doesn’t

Automotive
The auto sector carries its own Section 232 tariffs—25 percent on vehicles and certain parts—excluded from Section 122. The IEEPA overlay on imported tooling and non-USMCA components is gone. For gear manufacturers supplying transmission components, differential gears, and EV reduction drives, the clearest savings come on non-steel inputs: electronics, sensors, and rare earth magnets, which now face Section 122 rather than the higher IEEPA rates. USMCA-qualifying goods from Canada and Mexico are exempt entirely.

Aerospace and Defense
Gears for jet engines, turbines, and landing gear rely on Inconel, Hastelloy, maraging steels, and 9310 aircraft-quality alloy—often sourced from mills in Japan, Germany, and the UK. Many of these nickel-base superalloys and titanium alloys fall outside the steel and aluminum HTS chapters and may not carry Section 232 duties. Those materials face Section 122 until July 24—and potentially nothing after. Civil aircraft parts are specifically excluded from Section 122. Aerospace gear manufacturers should audit their HTS classifications now.

Wind, Industrial, and Mining
These sectors are the most steel-intensive and see the least relief. Wind turbine gearbox forgings (4140, 4340), large castings for mining gears, and heavy-duty enclosed drive components are fully or predominantly steel by value—meaning Section 232 dominates and Section 122 adds little. Savings are limited to non-steel content in assemblies: housings, instrumentation, imported bearings.