U.S. Further Modifies Section 232 Tariffs on Aluminum, Steel, and Copper Derivatives

U.S. Further Modifies Section 232 Tariffs on Aluminum, Steel, and Copper Derivatives
June 1, 2026 Proclamation – Effective June 8, 2026

Dear Valued Customers & Partners,
On June 1, 2026, the President issued a proclamation further modifying the Section 232 tariffs applicable to imports of aluminum, steel, and copper and their derivative products. The changes build on prior Section 232 actions and are intended to address evolving national security concerns while mitigating impacts on key downstream industries.

Key Takeaways

• Expanded eligibility for reduced tariffs (15%) The proclamation expands the list of derivative products eligible for the temporarily reduced 15% ad valorem duty to include:
  • Agricultural equipment

  • Certain residential HVAC systems and components
    These products were previously treated as derivative articles subject to higher tariff rates.

     

• Temporary relief for mobile industrial equipment
  The administration introduced temporary tariff modifications for certain mobile industrial equipment and machinery, recognizing their importance to domestic manufacturing, logistics, and infrastructure activity.

   

• Additional products brought into scope
  The tariff regime is broadened to include certain products not previously covered:
  • Aluminum lithographic plates

  • Steel racks\

     

• Revision to “U.S. content” threshold
  The threshold for a product to qualify as made “entirely” from U.S. aluminum, steel, or copper is reduced from 95% to 85% by weight.

   

• Updated tariff structure (June 8, 2026 – December 31, 2027)
  For covered aluminum and steel articles listed in Annex I-C to this proclamation:
  • Baseline tariff: 25% unless a lower rate of duty applies pursuant to clause 2b, 2c, or 2d of this proclamation
  • Preferred partner countries:
    • Products of Argentina, Ecuador, El Salvador, Guatemala, Japan, the Republic of Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, or a member nation of the EU
    • Effective duty capped at 15% minimum total when accounting for standard (Column 1) duties
• U.S.-origin metal content (composition-based eligibility):
  • Reduced additional duty of 10%
  • Weight-based (not value-based)
  • Importers seeking the 10% rate must substantiate:
    • Physical metal composition and 
    • Processing origin of metal inputs (i.e., “smelted & cast” or “melted and poured”
  • A product qualifies if at least 85% of its aluminum, steel, or copper content (by weight) is produced in the United States.
• Canada and Mexico (USMCA-qualified goods only):
  • 25% duty applies only to non-U.S. content
  • Minimum effective duty is 15%
  • Value-based (not weight-based)
• Practical sequencing: Importers should first evaluate eligibility based on U.S. metal content (by weight) and then determine whether the USMCA rule applies, which may increase the final duty.
  • Interaction of 10% Rule and USMCA Rule
    • The 10% rate (Clauses 2(c) + 4) determines initial eligibility based on U.S. metal content
    • However, for qualifying Canada and Mexico imports, Clause 2(d) recalculates the duty on a value basis and imposes a minimum 15% effective rate.
    • ⚠️ In practice, the 10% rate may not apply to USMCA imports—the 15% minimum can override it.
• Effective date
  All changes apply to goods entered or withdrawn from warehouse for consumption on or after June 8, 2026.
  Please see attached link to the proclamation and Annexes:

Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper into the United States – The White House