Trump Cuts Section 232 Tariffs on Farm and Industrial Equipment, Adds Steel Racks and Aluminum Plates to 25% List

WASHINGTON -- President Donald Trump on June 1 signed a proclamation amending his Section 232 national security tariffs on steel, aluminum and copper imports, selectively lowering duties on certain downstream goods while extending the reach of the broader tariff regime.

The changes take effect at 12:01 a.m. Eastern time on June 8 and run through Dec. 31, 2027, according to the proclamation published by the White House.

The White House fact sheet said the action was designed to "spur investment in American agriculture, housing, and manufacturing, and facilitate U.S. production of related products."

The proclamation's most direct relief goes to buyers of farm equipment. <cite index="15-9">Starting June 8, agricultural equipment such as combines and harvesters will face a 15% tariff, down from a 25% rate Trump set for a slew of derivative steel and aluminum products in April.</cite> <cite index="15-10">The 15% tariff rate also applies to certain residential HVAC systems and components, per the proclamation.</cite>

The order extends the same 15% rate to a broader range of heavy equipment. <cite index="15-14">Effective June 8, the rate will apply to mobile equipment such as bulldozers and forklifts imported from trading partners with which the U.S. has reached trade agreements since Trump returned to office, including the European Union, Japan and South Korea.</cite>

The proclamation also introduces a new incentive aimed at pulling foreign manufacturers toward American raw materials. <cite index="12-6">The order allows foreign companies to qualify for a 10% tariff if "their capital equipment includes at least 85% U.S. melted and poured or smelted and cast steel or aluminum by weight."</cite>

At the same time, the proclamation expands the list of goods subject to the 25% derivative rate. <cite index="17-6">The order adds two new categories of steel and aluminum derivative import products that will be subject to 25% duties: steel racks and aluminum lithographic plates.</cite> <cite index="13-4">Products made of 15% or less steel, aluminum, or copper will no longer be subject to Section 232 metals tariffs.</cite>

The underlying tariff architecture set in April remains largely intact. <cite index="11-9">Under Proclamation 11021 of April 2, 2026, Trump imposed an ad valorem duty of 50% on products made of those metals, a 25% duty on derivative products that tend to be predominantly composed of those metals, and a temporarily-reduced ad valorem duty of 15% on a subset of derivative products, namely fixed industrial machinery and power equipment.</cite>

<cite index="15-27">Trump's tariff regime has faced legal scrutiny and setbacks, most notably the Supreme Court's invalidation of levies he set using the International Emergency Economic Powers Act.</cite> <cite index="15-28">Monday's proclamation provides a safeguard for any potential legal challenge, stating that if any provision is deemed invalid, the rest of the document's content will remain in place.</cite>

The proclamation is the second major adjustment to the metals tariff framework this spring. <cite index="13-7,13-8,13-9">Trump signed the previous proclamation on April 2, 2026, significantly strengthening the existing Section 232 tariff regimes on aluminum, steel, and copper imports, with changes taking effect April 6, modifying tariffs originally established under Proclamation 9704, Proclamation 9705, and Proclamation 10962.</cite>

<cite index="18-6">"These tariff changes are temporary, lasting until December 31, 2027, to spur near-term investments that will rebuild the Nation's industrial base," the White House stated.</cite>

The White House did not announce immediate reaction from industry groups or Congressional leaders. The Detroit News first reported the signing.

Sources cited:
- White House Fact Sheet (https://www.whitehouse.gov/fact-sheets/2026/06/fact-sheet-president-donald-j-trump-updates-tariffs-on-steel-aluminum-and-copper-imports/)
- White House Proclamation (https://www.whitehouse.gov/presidential-actions/2026/06/further-adjusting-the-tariff-regimes-for-imports-of-aluminum-steel-and-copper-into-the-united-states/)
- Detroit News (https://www.detroitnews.com/story/business/2026/06/01/trump-tariffs-amended-copper-aluminum-iron-imports/90363531007/)
- Construction Dive (https://www.constructiondive.com/news/trump-steel-aluminum-copper-tariffs-construction-materials/821861/)
- GHY Trade Compliance (https://www.ghy.com/trade-compliance/us-adjusts-section-232-tariffs-on-aluminum-steel-and-copper-full-customs-value-now-applies/)