On June 1, 2026, the President signed a new proclamation adjusting the Section 232 tariffs for aluminum, steel, and copper products. The changes introduce temporary rate reductions for agricultural equipment, industrial machinery, and HVAC systems while also changing the requirements for products to qualify as being made from American metal.
If you import goods that fall under Section 232, these updates could create opportunities to reduce duty costs—but only if products are classified correctly and supply chain documentation supports eligibility. Here's what changed and what it could mean for your imports.
What changed and why it matters
The new proclamation amends an April 2 proclamation by reducing tariff rates for certain categories of equipment and HVAC systems:
Agricultural equipment and certain HVAC systems: These products, primarily for residential use, are now included in the derivatives category, and tariffs are temporarily reduced from 25% on their full value to 15%.
Mobile industrial equipment and machinery: Tariffs are temporarily reduced from 25% or lower depending on the origin and composition of the product. The rate you pay depends on a few factors, including:
- Whether the goods come from a country with an Agreed Rate Treatment (ART) deal (e.g., Japan, the UK, EU member nations, South Korea, Taiwan, Argentina, and others)
- Whether the product is made from U.S.-origin metal
- Whether it qualifies under USMCA
Certain aluminum lithographic plates and steel racks: These products have been added as metal derivatives and are now subject to Section 232 tariffs at 25%.
Additionally, the threshold for a product to qualify as "composed entirely" of American metal has lowered from 95% to 85%. This applies to all products in scope of the Section 232 metals tariffs. To qualify, the U.S.-origin aluminum, steel, or copper must account for at least 85% of the weight of that metal in the product.
What importers should do next
These changes took effect June 8, 2026, and the temporary reductions remain in place through December 31, 2027. Now is the time to act.
Review your product classifications
If you import agricultural equipment, HVAC systems, or mobile industrial machinery, check whether your products are listed under Annex III or Annex I-C. The tariff savings could be significant, but only if your products are classified correctly.
Assess your supply chain for U.S.-origin metal content
With the "composed entirely" threshold dropping to 85%, products that previously didn't qualify for reduced rates may now be eligible. Work with your suppliers to document and verify metal origin so you're ready to claim the appropriate rate.
Stay tuned for Commerce guidance
Several provisions around USMCA content calculations are pending further guidance from the Department of Commerce and U.S. Customs and Border Protection.
As importers evaluate the impact of these changes, product classification and sourcing documentation will be critical. Businesses that take the time to review their products and supply chains now may be able to reduce duty costs while ensuring compliance with evolving Section 232 requirements.
Additional resources
Stay informed
Developments in customs and trade continue to evolve—stay informed to be prepared:
