The White House issued a new proclamation on June 1, 2026, further adjusting tariff regimes for imports of aluminum, steel and copper into the United States.
The changes apply to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern daylight time on June 8, 2026.
WHAT THE JUNE 2026 SECTION 232 PROCLAMATION CHANGES
The proclamation modifies Section 232 tariff treatment for certain steel, aluminum and copper derivative products. The changes include:
- Agricultural equipment and certain residential HVAC systems and components are added to the temporary 15% Section 232 tariff reduction category.
- Mobile industrial equipment and machinery listed in Annex I-C receive temporary tariff treatment through December 31, 2027.
- Aluminum lithographic plates and steel racks are added to the Section 232 derivative product framework.
- The threshold for certain products to qualify as made “entirely” from U.S. aluminum, steel or copper is reduced from 95% to 85%.
SECTION 232 TARIFF REDUCTION FOR AGRICULTURAL EQUIPMENT
The proclamation adds agricultural equipment to the category of derivative products subject to the temporarily reduced 15% ad valorem Section 232 duty under Proclamation 11021 published in April 2, 2026 (Strengthening Actions Taken To Adjust Imports of Aluminum, Steel, and Copper Into the United States).
Agricultural equipment appears in Annex III, titled “Temporary Reduction List for Section 232 Steel and Aluminum Derivatives.” The listed steel derivative products include agricultural, horticultural and forestry machinery, plows, mowers, combine harvester-threshers, harvesting machinery, threshing machinery, tractors suitable for agricultural use, tractor body stampings, gear boxes, mufflers, exhaust pipes, clutches, farm wagons, carts and related parts.
ANNEX III: Temporary Reduction List for Section 232 Steel and Aluminum Derivatives
SECTION 232 TARIFF REDUCTION FOR HVAC EQUIPMENT AND COMPONENTS
The proclamation also adds certain heating, ventilation and air conditioning systems and components that are predominantly for residential use to the temporary 15% Section 232 tariff reduction category.
Annex III includes listed HVAC-related steel and aluminum derivative products, including window or wall-type air-conditioning machines, other air-conditioning machines, parts of air-conditioning machines, air-conditioning evaporator coils, parts of automotive air-conditioning machines and parts of heat pumps for air-conditioning machines.
ANNEX III SUMMARY: TEMPORARY REDUCTION LIST FOR SECTION 232 STEEL AND ALUMINUM DERIVATIVES
Annex III is the temporary reduction list for Section 232 steel and aluminum derivatives. The annex states that the 25% Section 232 tariff on listed steel and aluminum derivative articles is reduced as outlined in clause 5 of Proclamation 11021 until December 31, 2027.
If a product is identified on both lists in Annex III, it is subject to a Section 232 tariff once, rather than a combined rate.
The steel derivative list includes products across several equipment and machinery categories, including:
- Agricultural equipment and tractor-related articles
- HVAC equipment and air-conditioning machinery
- Machinery for lifting, handling, loading and unloading
- Industrial robots, conveyors and elevators
- Metal-working machinery, molds and machine parts
- Transformers and heating apparatus
- Farm wagons, carts and related parts
The aluminum derivative list includes products such as air-conditioning evaporator coils, parts of air-conditioning machines, transformer-related components, printed circuit assemblies, ferrites, tractor body stampings and parts for liquid crystal devices.
SECTION 232 TARIFF TREATMENT FOR MOBILE INDUSTRIAL EQUIPMENT AND MACHINERY
Mobile industrial equipment and machinery listed in Annex I-C receive temporary tariff treatment from June 8, 2026, through December 31, 2027.
Annex I-C is titled “Section 232 Tariff on Full Value.” The annex states that an ad valorem Section 232 tariff applies to the full value of the listed articles until December 31, 2027. If a product is listed multiple times in Annex I-C, it is subject to the applicable Section 232 tariff once, rather than a combined rate.
ANNEX I-C SUMMARY: MOBILE INDUSTRIAL EQUIPMENT COVERED BY SECTION 232 TARIFF CHANGES
Annex I-C lists steel derivative products tied to mobile industrial equipment and machinery. Covered product categories include:
- Self-propelled rider-type counterbalanced fork-lift trucks
- Self-propelled works trucks fitted with lifting and handling equipment
- Bulldozers and angledozers
- Graders and levelers
- Scrapers, tamping machines and road rollers
- Front-end shovel loaders
- Backhoes, shovels, clamshells and draglines
- Machinery parts for certain lifting, earthmoving and handling equipment
- Single-axle tractors and non-agricultural tractors
- Mobile cranes
- Mobile drilling derricks
ANNEX I-C SECTION 232 RATES FOR LISTED MOBILE INDUSTRIAL EQUIPMENT
For products listed in Annex I-C, the proclamation states that the applicable additional Section 232 ad valorem rate is 25% unless a lower rate applies under the proclamation.
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 Column 1 duty rate. If the Column 1 duty rate is less than 15%, the Column 1 duty rate plus the additional Section 232 duty totals 15%. If the Column 1 duty rate is at least 15%, the additional Section 232 duty is zero.
For products of Canada and Mexico that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement, the proclamation states that a 25% duty applies only to the non-U.S. content of the product. The total effective duty assessed under that provision may not be less than 15% ad valorem.
10% SECTION 232 TREATMENT FOR CERTAIN U.S.-METAL DERIVATIVE ARTICLES
The proclamation provides a 10% treatment, determined based on the product’s Column 1 duty rate methodology, for 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.
U.S.-METAL CONTENT THRESHOLD REDUCED FROM 95% TO 85%
The proclamation changes the threshold used to determine when a product’s metal content is treated as made “entirely” from U.S. aluminum, steel or copper.
Under the proclamation, a product’s metal content is deemed composed entirely of aluminum smelted and cast in the United States, steel melted and poured in the United States, or copper smelted and cast in the United States if the relevant aluminum, steel and copper account for at least 85% by weight of the aluminum, steel and copper in the product.
This replaces the prior 95% threshold.
STEEL RACKS AND ALUMINUM LITHOGRAPHIC PLATES ADDED TO SECTION 232 DERIVATIVE TARIFFS
The proclamation adds aluminum lithographic plates and steel racks to the product coverage of Proclamation 11021. These products are treated as aluminum and steel derivative products subject to the applicable Section 232 derivative tariff.
This change also applies to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern daylight time on June 8, 2026.
CBP GUIDANCE FOR U.S. CONTENT UNDER USMCA TREATMENT
For Annex I-C products of Canada and Mexico that qualify for USMCA preferential tariff treatment, the proclamation states that the Secretary of Commerce shall issue guidance to U.S. Customs and Border Protection regarding the assessment of U.S. content.
The proclamation also states that if CBP determines that an importer has engaged in fraud or deliberately misled the U.S. government regarding U.S. content, CBP shall impose penalties to the extent permitted by law.
QUICK SECTION 232 TARIFF FAQ & KEY DATES FOR THIS ARTICLE
June 1, 2026: White House proclamation issued.
June 8, 2026: Changes apply to covered goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern daylight time.
December 31, 2027: Temporary treatment for Annex I-C products ends at 11:59 p.m. Eastern standard time. Annex III also applies temporary reductions until December 31, 2027.
January 1, 2028: Products listed in Annex I-C become subject to the applicable rates set out in clause 3 of Proclamation 11021.
When do the June 2026 Section 232 tariff changes take effect?
The changes take effect for covered goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern daylight time on June 8, 2026.
Which products are covered by the Section 232 agricultural equipment tariff reduction?
Annex III includes listed agricultural and tractor-related products, including plows, mowers, combine harvester-threshers, harvesting machinery, agricultural tractors, tractor parts, farm wagons and related components.
Which HVAC products are covered by the Section 232 tariff reduction?
Annex III includes listed HVAC-related products, including certain air-conditioning machines, parts of air-conditioning machines, evaporator coils and parts of heat pumps for air-conditioning machines.
What is Annex I-C?
Annex I-C is the “Section 232 Tariff on Full Value” list. It covers listed mobile industrial equipment and machinery, including forklifts, works trucks, bulldozers, graders, loaders, backhoes, non-agricultural tractors, mobile cranes and mobile drilling derricks.
What is Annex III?
Annex III is the “Temporary Reduction List for Section 232 Steel and Aluminum Derivatives.” It lists steel and aluminum derivative products eligible for temporary reduced Section 232 tariff treatment until December 31, 2027.
What is the new U.S.-metal content threshold?
The proclamation lowers the threshold from 95% to 85% by weight of the aluminum, steel and copper content in the product.
ORIGINAL SOURCES
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