The United States is temporarily adjusting Section 232 tariffs on steel, aluminum and copper imports, namely reducing the rate charged for certain agricultural and industrial goods, according to a proclamation signed by President Donald Trump on Monday.
Starting June 8, agricultural equipment such as combines and harvesters will face a 15% tariff, down from a 25% rate Trump set for a slew of derivative steel and aluminum products in April. The 15% tariff rate will also apply to certain residential HVAC systems and components, per the proclamation.
“In my judgment, this modification appropriately accounts for these products’ roles in productive economic activity in the United States and accounts for recent circumstances affecting the relevant industries and services that use these products,” Trump said in the document.
Trump also added aluminum lithographic plates and steel racks to the list of derivative products that qualify for the 25% tariff rate he set in April.
Meanwhile, the U.S. is expanding the list of industrial goods that qualify for a reduced 15% tariff. Effective June 8, the rate will apply to mobile equipment such as bulldozers and forklifts imported from trading partners with which the U.S. has reached trade agreements since Trump returned to office, including the European Union, Japan and South Korea.
The changes to tariff treatment for agricultural equipment and industrial goods, as well as the derivative production expansion, will stay in effect until Dec. 31, 2027, per the proclamation.
Beyond lowering tariffs directly, Trump also will tweak rules related to preferential tariff treatment for products made “entirely” with U.S. steel, aluminum and copper. Starting Jan. 1, 2028, imports will qualify for a 10% tariff if 85% of their content consists of steel, aluminum or copper produced in the U.S., per the proclamation. Currently, the threshold for goods to qualify as “entirely” made of U.S. metals is 95%.
“In my judgment, this modification will incentivize increased use of American aluminum, steel, and copper in downstream derivative products,” Trump said in the proclamation.
These adjustments are the latest to steel, aluminum and copper tariffs Trump first introduced last year. Since then, the president has hiked steel and aluminum levies to 50% and grown the list of covered derivative products to include numerous transportation and household goods, among other adjustments.
Along the way, Trump’s tariff regime has faced legal scrutiny and setbacks, most notably the Supreme Court’s invalidation of levies he set using the International Emergency Economic Powers Act. Monday’s proclamation provides a safeguard for any potential legal challenge, however, stating that if any provision is deemed invalid, the rest of the document’s content will remain in place.
