On June 1, President Trump issued a proclamation revising certain Section 232 tariffs on metal-based products, effective June 8 at 12:01 a.m. ET.
In summary, the primary adjustments are:
-
-
-
- Tariff reductions from 25% to 15% for agricultural machinery, such as harvesters and combines, and residential HVAC systems.
- Expanding the 15% tariff category to include mobile industrial machinery, including forklifts and bulldozers, for eligible trade deal partners.
- A preferential 10% duty rate for foreign firms whose capital equipment utilizes at least 85% U.S.-sourced steel or aluminum by weight.
These temporary measures are scheduled to remain in place until December 31, 2027, with the goal of encouraging short-term industrial investment and strengthening the domestic manufacturing base.
For full information, please refer to the proclamation linked above and details below:
-
-
-
-
- Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after June 8, 2026, subchapter III of chapter 99 of the HTSUS is modified as provided in ANNEX IV to this proclamation and the lists of products provided in:
- ANNEX I-A,
- ANNEX I-B,
- ANNEX II, and
- ANNEX III of Proclamation 11021 are modified as set forth in the annexes to this proclamation.
-
-
-
- Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after June 8, 2026, until 11:59 p.m. ET on Dec. 31, 2027, the additional Section 232, as amended, for all aluminum and steel articles listed in ANNEX I-C to this proclamation will be:
-
-
-
-
- 15% (combined Column 1 and Section 232) - For products of Argentina, Ecuador, El Salvador, Guatemala, Japan, the Republic of Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, or European Union;
- 10% (combined Column 1 and Section 232) - For derivative articles the aluminum content of which is composed entirely of aluminum that was smelted and cast in the U.S., or the steel content of which is composed entirely of steel that was melted and poured in the U.S.;
- 25% on non-US content - For products of Canada and Mexico that qualify for preferential tariff treatment under USMCA. For purposes of this clause, “non-U.S. content” means the total value of the product minus the value attributable to parts produced in the U.S. The Secretary shall issue guidance to Customs and Border Protection (CBP) regarding the assessment of “U.S. content” for purposes of this clause. If CBP determines that an importer has engaged in fraud or has deliberately misled the U.S. Government regarding the U.S. content of an imported product, CBP shall impose penalties to the extent permitted by law.
- 25%, unless a lower rate of duty applies pursuant to the three clauses preceding this.
-
-
-
- Effective with respect to goods entered for consumption or withdrawn from warehouse for consumption on or after Jan. 1, 2028, the applicable additional ad valorem rate of duty imposed under Proclamation 9704, as amended; Proclamation 9705, as amended; and Proclamation 10962, as amended, for imports of products listed in ANNEX I-C to this proclamation shall be the rates set out in clause (3) of Proclamation 11021.
For purposes of this proclamation and Proclamation 11021, as set forth in ANNEX IV to this proclamation, a product’s metal content shall be deemed composed entirely of aluminum that was smelted and cast in the U.S., of steel that was melted and poured in the U.S., or of copper that was smelted and cast in the U.S., if such aluminum, steel, and copper account for at least 85% of weight of the aluminum, steel, and copper of the product.
