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The United States is temporarily adjusting Section 232 tariffs on steel, aluminum and copper imports, reducing the rate charged on certain agricultural and industrial products, 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 percent tariff, down from a 25 percent rate that Trump imposed on a wide range of steel and aluminum-derived products in April. The 15 percent fee will also apply to certain residential HVAC systems and components, according to the proclamation.
“In my judgment, this amendment adequately explains the roles of these products 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 percent tariff rate he set in April.
Meanwhile, the US is expanding the list of industrial goods that qualify for a reduced 15% tariff. Starting June 8, the levy will apply to mobile equipment such as excavators and forklifts imported from trading partners with which the US has struck trade deals since Trump returned to office, including the European Union, Japan and South Korea.
The changes in the tariff treatment for agricultural equipment and industrial goods, as well as the expansion of the production of derivatives, will remain in effect until December 31, 2027, according to the proclamation.
Beyond directly cutting tariffs, Trump will also adjust rules related to preferential tariff treatment for products made “wholly” with US steel, aluminum and copper. Beginning Jan. 1, 2028, imports will be eligible for a 10 percent tariff if 85 percent of their content consists of U.S.-produced steel, aluminum or copper, according to the proclamation. Currently, the threshold for goods to qualify as “wholly” made of US metals is 95%.
“In my judgment, this amendment will incentivize greater use of American aluminum, steel and copper in downstream derived products,” Trump said in the proclamation.
These adjustments are the latest in steel, aluminum and copper tariffs that Trump first introduced last year. Since then, the president has increased tariffs on steel and aluminum to 50 percent and grown the list of covered derivative products to include numerous transportation and household items, among other adjustments.
Along the way, Trump’s tariff regime has faced legal scrutiny and setbacks, most notably the Supreme Court’s invalidation of the rates it set through the International Emergency Economic Powers Act. Monday’s proclamation provides a safeguard against any potential legal challenge, but states that if any provision is deemed invalid, the rest of the document’s content will remain in place.
