White House lowers S232 duties on ag and HVAC equipment

President Donald Trump issued a June 1 proclamation modifying Section 232 tariffs on steel, aluminum, and copper. He pointed to new Commerce Department recommendations and “recent circumstances” affecting US users of industrial and agricultural equipment.

Key tariff changes

Agricultural equipment and certain residential HVAC systems will now qualify for a temporarily reduced S232 duty rate of 15%. This shift “appropriately accounts for these products’ roles in productive economic activity,” the proclamation states.

Mobile industrial equipment and machinery, including items like bulldozers and forklifts, will also receive temporary tariff relief through Dec. 31, 2027.

Additionally, two new steel and aluminum derivatives – steel racks and aluminum lithographic plates – are being added to the tariff program to prevent circumvention.

Rules maintained for specific countries

Imports from Argentina, Ecuador, El Salvador, Guatemala, Japan, Korea, Liechtenstein, Switzerland, Taiwan, the UK, and the EU will continue to pay a rate capped at 15%, depending on their Column 1 duty rate, according to the proclamation. This applies to various industrial equipment and machinery HTS codes listed in Annex I-C.

Canada and Mexico will face a 25% duty only on non-US content, with a minimum effective rate of 15%. This also applies to the HTS codes listed in Annex I-C.

US-content threshold lowered

The threshold for a product to qualify as made “entirely” from US steel, aluminum, or copper drops from 95% to 85% by weight, enabling more downstream goods to access the 10% duty rate for high-US-content imports. The administration says the change will “incentivize increased use of American aluminum, steel, and copper.”

Timing

The changes are effective June 8, 2026, and the temporary reductions run through Dec. 31, 2027.

Administration’s rationale

The administration believes these adjustments will support farmers, construction, logistics, and manufacturers that rely on equipment currently treated as steel or aluminum derivatives, according to the proclamation. It also says the changes are part of a broader effort to “continue effectively addressing the national security threats” found in previous S232 proclamations.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held various editorial positions with steel industry publications, associations, and mills since 2007. She joined the SMU team in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania.