Trump Administration Modifies Section 232 Tariffs

The Trump administration has announced several modifications to its Section 232 tariff program affecting steel, aluminum, copper, and a range of downstream products. The changes were issued through a June 1, 2026, presidential proclamation and took effect June 8.

One of the most significant updates is the creation of a new Annex I-C covering certain mobile industrial equipment, including forklifts, bulldozers, and other heavy machinery. Products classified under Annex I-C will generally be subject to a 25 percent tariff through December 31, 2027. However, imports from countries with qualifying trade arrangements with the United States will be eligible for a reduced 15 percent rate.

The proclamation also broadens eligibility for the program's reduced 10 percent tariff rate for products manufactured primarily with U.S.-sourced metals. Previously, products generally were required to contain at least 95 percent U.S.-melted-and-poured steel, U.S.-smelted-and-cast aluminum, or U.S.-processed copper to qualify. The administration lowered that threshold to 85 percent, making it easier for manufacturers to meet the domestic content requirement while retaining access to the preferential rate.

In addition, the administration made several product-specific revisions to the tariff schedules. Steel racks and aluminum lithographic plates were added to Annex I-B, subjecting those products to the 25 percent tariff applicable to many derivative articles. Conversely, certain agricultural equipment and selected residential HVAC systems and components were moved from Annex I-B to Annex III, reducing the applicable tariff rate from 25 percent to 15 percent.

According to the administration, the changes are intended to strengthen incentives for domestic sourcing and investment while maintaining the broader Section 232 framework designed to support U.S. steel, aluminum, and copper supply chains.