On June 1, the Trump Administration issued a new Proclamation adjusting Section 232 tariffs on steel, aluminum, and copper, signaling a continued effort to fine-tune the balance between protecting domestic metals production and recognizing the impact of tariffs on metal-intensive sectors.
Section 232 gives the President authority to restrict imports if they are found to “threaten to impair” U.S. national security. Section 232 tariffs focus primarily on strategic industrial materials and sectors, including steel, aluminum, and derivative products.
A central feature of the recent Proclamation is a temporary reduction in tariffs from 25% to 15% on select agriculture and construction equipment, effective June 8 through Dec. 31, 2027.
Importantly, it introduces a new preferential 10% tariff rate for imported capital equipment that uses predominantly U.S.-produced metal inputs. It applies to companies located in Argentina, Ecuador, El Salvador, Guatemala, Japan, Liechtenstein, South Korea, Switzerland, Taiwan, the United Kingdom, and the European Union.
The Proclamation also incorporates country-specific tariff treatment, adding further complexity to the implementation. For a group of U.S. trading partners, the policy establishes a blended approach tied to existing tariff rates. Imports from these jurisdictions will face a total tariff of 15% (where current duties are below that threshold), while products already subject to tariffs of 15% or higher will not incur additional Section 232 duties under this provision.
For Canada and Mexico, the Administration preserves the USMCA framework by applying the 25% tariff only to the non-U.S. content of qualifying products. However, the policy establishes a minimum effective tariff of 15%, ensuring that some level of additional duty applies even where U.S. content is significant. The Administration placed a heightened importance on accurate certification of U.S. content, with clear enforcement and penalties for misrepresentation will be a priority.
Since the Section 232 tariffs were introduced, AEM has relentlessly engaged the White House, Department of Commerce, and United States Trade Representative (USTR) around the need for tariff relief. The Proclamation signals a recognition by the Trump Administration that tariffs impact the cost and competitiveness of equipment manufacturers and our customers, as well as a willingness to provide manufacturers with the runway needed to scale up domestic manufacturing.
AEM is working closely with member companies to assess both the immediate and long-term economic impacts of the Section 232 tariff changes on the North American equipment manufacturing industry.
For more information, please contact AEM’s Alexander Russ at aruss@aem.org.
