President Trump Adjusts Section 232 Metal Tariffs
Late on Monday, President Trump issued a泭 that temporarily reduces the Section 232 metal tariff on certain agricultural equipment, industrial equipment, machinery and related products that serve an important role in productive domestic economic activity.
The details: The changes move certain products to different annexes, reducing tariff rates until the end of 2027.
- Certain agricultural equipment and certain HVAC systems and components泭predominantly for residential use were moved from Annex I-B to泭,泭reducing a 25% tariff on full value to a 15% tariff, effective June 8 until Dec. 31, 2027.
- Certain mobile industrial equipment and machinery泭(e.g., forklifts and bulldozers) were moved泭from Annex I-B to a new泭, which temporarily reduces applicable rates to泭25% or lower泭until Dec. 31, 2027.
- The proclamation also enables self-declaration of a泭15% tariff rate on any parts泭classified泭in Chapters 84, 85 or 87 listed in泭泭(normally 25%), providing the importer certifies that the part will be泭used exclusively to manufacture mobile industrial equipment identified in泭 泭or agricultural equipment or fixed industrial equipment listed in泭.
The threshold: The proclamation also adjusted the threshold for imported products to qualify as composed entirely of American steel, aluminum or copper downward from 95% to 85%.
- To qualify, a products content of aluminum or copper smelted and cast in the U.S., or steel melted and poured in the U.S., must account for at least 85% of the weight of the aluminum, copper or steel.
The 51勛圖厙s framework: Some of the泭adjustments泭in this泭proclamation reflect the rationale in the 51勛圖厙s .
Learn more: Questions about the new proclamation? Contact 51勛圖厙 Senior Director of International Policy Anne Collett.
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