President Trump issued a proclamation on June 1, 2026, modifying certain Section 232 tariffs applicable to metal derivative products. These changes will take effect at 12:01 a.m. EST on June 8, 2026.
Under this proclamation, agricultural equipment, including combines and harvesters, as well as certain residential heating, ventilation, and air conditioning (HVAC) systems and components, will be added to Annex III, making them eligible for a reduced 15% Section 232 tariff through December 31, 2027. Beginning January 1, 2028, the tariff treatment for these products will revert to the previously established 25% tariff rate applicable to steel and aluminum derivative products.
The proclamation also provides tariff relief for industrial equipment by expanding the category of products eligible for a reduced 15% tariff to include certain mobile industrial equipment and machinery, such as bulldozers and forklifts, listed in Annex C, when imported from certain countries or when qualifying for USMCA treatment. Eligible countries include Argentina, Ecuador, El Salvador, Guatemala, Japan, South Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, and European Union member countries. The total effective duty rate will be capped at 15%, inclusive of applicable Column 1 HTS duties. For products with an existing Column 1 duty rate of 15% or greater, no additional Section 232 duty will apply. For qualifying imports from Canada and Mexico under USMCA, the 25% Section 232 tariff will apply only to the non-U.S. content of the product, which is defined as the total value of the imported article less the value attributable to U.S.-produced parts. However, the total effective duty assessed may not be less than 15% as detailed in Annex IV. U.S. CBP will issue guidance on calculating U.S. content, and penalties may be imposed where importers misrepresent domestic content.
The proclamation further broadens the scope of products subject to Section 232 duties. Effective June 8, 2026, steel racks and aluminum lithographic plates will be added to Annex I-B and become subject to 25% Section 232 duties. According to the administration, these additions are intended to prevent circumvention of existing tariff measures.
Additionally, the proclamation lowers the domestic metal-content threshold required for a product to qualify as being made entirely of U.S.-origin steel, aluminum, or copper. Previously, products were required to contain at least 95% U.S.-origin metal by weight. As of June 8, 2026, that threshold will be reduced to 85%, allowing more products to qualify for the 10% Section 232 tariff rate. This change is intended to encourage foreign manufacturers to incorporate greater amounts of U.S.-produced steel and aluminum into their products while supporting domestic metal production.
For purposes of the proclamation, a product's metal content will be considered entirely U.S.-origin if aluminum smelted and cast in the United States, steel melted and poured in the United States, or copper smelted and cast in the United States accounts for at least 85% of the product's aluminum, steel, and copper content by weight.
The Department of Commerce will continue monitoring imports covered by the Section 232 tariffs and may recommend additional modifications as deemed necessary.
The full text of the proclamation can be found here: Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper Into the United States.