Section 232 Equipment Tariffs: What Changes on June 8, 2026

Quick answer: On June 1, 2026, a presidential proclamation lowered Section 232 equipment tariffs on agricultural and certain industrial equipment from 25% to 15%, expanded the 15% category to include mobile industrial equipment such as bulldozers and forklifts from eligible trade-deal countries, and created a new 10% rate for capital equipment containing at least 85% U.S. steel or aluminum by weight. The changes take effect at 12:01 a.m. ET on June 8, 2026, and run through December 31, 2027.

What did the June 2026 Section 232 proclamation change?

On the evening of June 1, 2026, President Trump signed a proclamation adjusting certain Section 232 metal-based product tariffs. The proclamation does three main things:

• It lowers tariffs on agricultural equipment, such as combines and harvesters, and certain other equipment including residential heating, ventilation, and air conditioning (HVAC) systems, from 25% to 15%.
• It expands the existing 15% industrial-equipment category to include mobile industrial equipment, such as bulldozers and forklifts, when imported from trade deal countries entitled to that treatment.
• It allows capital equipment to qualify for a 10% duty rate when the equipment includes at least 85% U.S. melted and poured or smelted and cast steel or aluminum by weight.

The administration has described these changes as temporary, lasting until December 31, 2027, to spur near-term investments intended to rebuild the nation’s industrial base.

When do the new Section 232 equipment tariffs take effect?

The new rates take effect at 12:01 a.m. ET on June 8, 2026. They apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after that time. The adjusted rate structure runs through 11:59 p.m. ET on December 31, 2027, after which the rates set out in the underlying proclamation framework are scheduled to resume on January 1, 2028.

How are the new Section 232 tariff rates structured?

For the aluminum and steel articles covered by the proclamation, the additional Section 232 duty between June 8, 2026, and December 31, 2027, begins at a baseline of 25%, unless a lower rate applies. The lower rates work as follows.

Trade-deal countries

For products of Argentina, Ecuador, El Salvador, Guatemala, Japan, the Republic of Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, or a member nation of the European Union, the rate is determined by the product’s current Column 1 Duty Rate under the Harmonized Tariff Schedule of the United States (HTSUS). Where that Column 1 rate is below 15%, the Column 1 rate plus the additional Section 232 duty is set to total 15%. Where the Column 1 rate is already at least 15%, the additional Section 232 duty is 0%.

Equipment with high U.S. metal content

A 10% rate applies to derivative articles whose aluminum content is composed entirely of aluminum smelted and cast in the United States, or whose steel content is composed entirely of steel melted and poured in the United States. This rate is determined in the same manner as the trade-deal-country provision above.

Canada and Mexico under USMCA

For products of Canada and Mexico that qualify for preferential treatment under the U.S.-Mexico-Canada Agreement, a 25% duty applies only to the non-U.S. content of the product. Non-U.S. content means the total value of the product minus the value attributable to parts produced in the United States. The total effective duty under this provision will not be less than 15% ad valorem. Customs and Border Protection (CBP) will receive guidance on assessing U.S. content, and CBP may impose penalties where an importer is found to have engaged in fraud or deliberately misled the government regarding U.S. content.

When more than one rate could apply

Where multiple rates could apply to a single product, the lowest applicable rate is the one that governs.

What counts as U.S. metal content under the new rule?

For purposes of the proclamation, a product’s metal content is treated as composed entirely of U.S.-origin metal if U.S.-smelted, melted, or cast aluminum, steel, or copper accounts for at least 85% of the weight of those metals in the product. This 85% threshold is the basis for both the 10% high-U.S.-content rate and the U.S.-content calculations applied elsewhere in the proclamation.

Which equipment categories are affected?

The proclamation specifically references several equipment types that importers should map against their own product lines:

• Agricultural equipment, including combines and harvesters
• Residential HVAC (heating, ventilation, and air conditioning) systems
• Mobile industrial equipment, including bulldozers and forklifts, from eligible trade-deal countries
• Capital equipment generally, where U.S. metal content can be substantiated

What should importers do before June 8, 2026?

If your supply chain includes agricultural machinery, HVAC systems, or mobile industrial equipment, the adjustments may change your landed cost ahead of the June 8 effective date. Country of origin, USMCA qualification, and documented U.S. metal content each factor into which rate applies to a given shipment. Importers should take three practical steps:

1. Review affected product classifications. Identify which of your imported items fall into the agricultural, HVAC, or mobile-industrial-equipment categories, and confirm their HTSUS Column 1 Duty Rates.
2. Confirm origin and content documentation. The 85% U.S.-content threshold and the USMCA non-U.S.-content calculation are only useful to importers who can substantiate them with records. Verify what your suppliers can document.
3. Plan entry timing. Because the rates apply to goods entered on or after June 8, the timing of your entries relative to that date may affect duty owed.

Western Overseas is reviewing the proclamation annexes and the forthcoming CBP guidance, and can help importers assess classification, eligibility, and entry timing. As always, Western Overseas provides compliance and operational guidance as your customs broker and freight forwarder. For strategic legal advice on tariff exposure or eligibility under Section 232, we recommend working directly with a licensed customs attorney.

Frequently Asked Questions

What is Section 232? Section 232 of the Trade Expansion Act of 1962 authorizes the President to adjust imports, including through tariffs, when the Department of Commerce finds that those imports threaten to impair national security. It is the statutory basis for U.S. tariffs on steel, aluminum, and copper and their derivative products.

How much did equipment tariffs drop? Agricultural equipment such as combines and harvesters, along with certain other equipment including residential HVAC systems, dropped from 25% to 15%. A new 10% rate is available for capital equipment containing at least 85% U.S. steel or aluminum by weight.

Are the new Section 232 equipment tariffs permanent? No. The administration has described the changes as temporary, running from June 8, 2026, through December 31, 2027.

Do the changes apply to goods from Canada and Mexico? Yes, with a specific structure. For USMCA-qualifying products of Canada and Mexico, a 25% duty applies only to the non-U.S. content of the product, subject to a total effective duty floor of 15% ad valorem.

Which countries are eligible for the rate tied to the Column 1 Duty Rate? The proclamation names Argentina, Ecuador, El Salvador, Guatemala, Japan, the Republic of Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, and member nations of the European Union.

Sources

• Presidential Proclamation: Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper into the United States (June 1, 2026)
• White House Fact Sheet: President Donald J. Trump Updates Tariffs on Steel, Aluminum, and Copper Imports(June 1, 2026)

This post is provided for informational purposes and does not constitute legal or customs advice. Contact your Western Overseas representative for guidance specific to your shipments.