U.S. Adjusts Section 232 Tariffs on Aluminum, Steel, and Copper

President Trump in a proclamation on the evening of June 1, 2026, announced that his administration is adjusting certain Section 232 metal-based product tariffs which become effective at 12:01 a.m. ET on June 8, 2026.

The proclamation adjusts the tariffs on agricultural equipment, such combines and harvesters, as well as certain other equipment including heating, ventilation, and air conditioning (HVAC) systems for residential use, from 25% to 15%, while it expands the existing category of industrial equipment subject to a 15% tariff to include mobile industrial equipment, like bulldozers and forklifts, when imported from trade deal countries that are entitled to such treatment.

The White House said the proclamation “encourages foreign companies to use more U.S. steel and aluminum by allowing them to qualify for a 10% duty rate, if their capital equipment include at least 85% U.S. melted and poured or smelted and cast steel or aluminum by weight.”

According to the administration, these tariff changes are temporary, lasting until December 31, 2027, “to spur near–term investments that will rebuild the Nation’s industrial base.”

Here are the details in the proclamation:

(1) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on June 8, 2026, subchapter III of chapter 99 of the HTSUS is modified as provided in ANNEX IV to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.

(2) Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on June 8, 2026, until 11:59 p.m. ET on Dec. 31, 2027, the applicable additional ad valorem rate of duty imposed pursuant to Section 232 under Proclamation 9704, as amended, and Proclamation 9705, as amended, for all aluminum and steel articles listed in ANNEX I-C to this proclamation shall be:

(a) 25%, unless a lower rate of duty applies pursuant to clause (2)(b), (2)(c), or (2)(d) of this proclamation;

(b) For products of Argentina, Ecuador, El Salvador, Guatemala, Japan, the Republic of Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, or a member nation of the European Union, the rate of duty shall be determined by the product’s current ad valorem (or ad valorem equivalent) rate of duty under Column 1 of the HTSUS (Column 1 Duty Rate). For products of these jurisdictions with a Column 1 Duty Rate that is less than 15%, the sum of the Column 1 Duty Rate and the additional Section 232 ad valorem rate of duty pursuant to this clause, shall be 15%. For products of these jurisdictions with a Column 1 Duty Rate that is at least 15%, the additional Section 232 ad valorem rate of duty imposed pursuant to this clause shall be 0%;

(c) 10%, determined based on the product’s current ad valorem (or ad valorem equivalent) Column 1 Duty Rate in the same manner outlined in clause (2)(b) of this proclamation, 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.; and

(d) For products of Canada and Mexico that qualify for preferential tariff treatment under the U.S.–Mexico–Canada Agreement, a duty of 25% shall apply only to the non-U.S. content of the product. 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. Notwithstanding the foregoing, the total effective duty on the imported product assessed under this subclause shall not be less than 15% ad valorem, as detailed in Annex IV of this proclamation. 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.

(3)(a) Effective with respect to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on January 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.

(b) If a product is subject to multiple rates of duty under clause (2) of this proclamation, the lowest applicable rate of duty shall apply.

(4) 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.

BorderBuddy is monitoring the implementation and guidelines of this Section 232 proclamation and will update this page as more information becomes available.

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