The Trump administration has made another adjustment to its Section 232 tariff program, announcing temporary reductions on certain metal-containing products beginning June 8, 2026. The changes will remain in place through December 31, 2027, and are intended to encourage investment in U.S. manufacturing and industrial capacity.

Please refer to Subchapter III of chapter 99 of the HTSUS ANNEX IV and the lists of products provided in ANNEX I-A, ANNEX I-B, ANNEX II, and ANNEX III of Proclamation 11021 as modified.

For importers, the biggest impact may be on agricultural equipment, residential HVAC systems, and certain industrial machinery (ANNEX I-C). Tariffs on products such as combines, harvesters, and residential heating and cooling equipment will drop from 25% to 15%. Mobile industrial equipment—including items like bulldozers and forklifts—has also been added to the existing reduced-duty category that applies to eligible countries covered by certain trade agreements.

The proclamation also introduces an incentive for manufacturers that rely heavily on U.S.-produced metals. Products containing at least 85% U.S.-melted and poured steel, or U.S.-smelted and cast aluminum, by weight may qualify for a reduced 10% tariff rate.

For imports from Canada and Mexico under the USMCA framework, duties will generally apply only to the non-U.S. content of the product. However, the administration has established a minimum effective duty rate of 15%. Similar treatment applies to imports from several key trading partners—including the European Union, United Kingdom, Japan, South Korea, Taiwan, and others, where the final duty will be determined based on the applicable Column 1 duty rate, subject to a 15% minimum combined rate.

The practical takeaway is that tariff exposure for many imported equipment products may be changing. Importers should pay close attention to country of origin, eligibility under trade agreements, and the amount of U.S.-sourced steel or aluminum contained in their products, as each of these factors may influence the final duty rate.