Overview
On June 1, 2026, President Trump issued a new proclamation further amending the Section 232 tariffs on steel, aluminum, and copper that it issued on April 2, 2026. These changes, which potentially lower costs for U.S. importers, will be effective June 8, 2026 and expand eligibility for preferential tariff rates.
For U.S. businesses that import goods or rely on global supply chains—especially in manufacturing, construction, and agriculture—these updates may affect duty rates, sourcing decisions, and overall costs.
Key Changes to the New Section 232 Tariffs
- U.S. Content Preferential Rate. In the April rules, a 10 percent tariff was applied to products made outside the U.S. if they contained at least 95 percent steel melted and poured in the U.S. or aluminum or copper smelted and cast in the U.S. The new proclamation reduces that requirement to 85 precent.
- USMCA. In the April rules, a 10 percent tariff applied to products manufactured abroad using at least 95 percent U.S. melted and poured steel or U.S. smelted and cast aluminum or copper. The law has lowered that threshold to 85 percent.
- Lower tariffs on mobile industrial equipment. Tariff on certain industrial equipment like bulldozers and forklifts have been lowered to 15% if imported from countries eligible for preferential treatment under U.S. trade agreements.
- Lower tariffs on agricultural equipment. Tariffs on certain agricultural equipment like combines and harvesters are lowered from 25 percent to 15 percent.
What Do These Changes Mean for Importers?
These changes may create opportunities to reduce tariff exposure, but they also require careful review of sourcing and classification. Businesses should continue taking the following steps:
- Review product classification. Confirm the classification of your goods under the Harmonized Tariff Schedule of the U.S. to determine whether they are impacted by these changes.
- Calculate the new duty rate. Updated tariff rates may impact pricing, margins, and contract terms, particularly for industries that rely heavily on imports.
- Monitor agency guidance. Continue to monitor U.S. Customs and Border Protection guidance on the implementation of the new regulations. Staying current is important for compliance.
The latest tariff revisions provide greater flexibility for importers but also add another layer of complexity. Companies that proactively review their classifications, sourcing, and compliance strategies will be better positioned to control costs and avoid surprises.
In the meantime, we will continue to keep you updated should new developments become available.
