Most importers are focused on tariff rates. The bigger issue is qualification.
The latest Section 232 changes create new opportunities to reduce duty exposure on certain industrial, agricultural, and HVAC equipment. But we're already seeing that the companies positioned to benefit are the ones that can prove origin, content, and sourcing details with confidence.
In many cases, the savings will not come from a lower published tariff rate. They will come from whether an importer can document http://U.S. steel or aluminum content, properly calculate http://non-U.S. value, and withstand Customs scrutiny. That is where the process often breaks down.
The difference between paying 25%, 15%, or 10% is no longer just a sourcing decision. It is a documentation and compliance exercise. Companies with strong supplier visibility stand to gain. Those relying on incomplete content declarations may find the expected savings disappear at entry, or worse, during a post-entry review.
The key takeaway is that the administration of Donald Trump is creating a temporary reduced-duty framework for certain steel- and aluminum-intensive equipment imports from June 8, 2026 through December 31, 2027.
1. Some equipment tariffs drop from 25% to 15%
Certain metal-based derivative products, including:
Agricultural equipment (http://e.g., combines, harvesters)
Some residential HVAC equipment
Other specified capital equipment listed in the annexes
These will generally move from a 25% Section 232 tariff treatment to an effective 15% treatment when imported from eligible trade-partner countries.
2. More industrial equipment becomes eligible
The 15% treatment is expanded to include additional mobile industrial equipment such as:
Bulldozers
Forklifts
Similar heavy equipment
These apply when imported from countries covered by the proclamation's preferential treatment provisions.
3. Strong incentive to use http://U.S. steel and aluminum
A lower effective duty rate of 10% becomes available if the product's steel or aluminum content is considered entirely U.S.-origin. Under the proclamation, the metal content is treated as entirely U.S.-origin if at least 85% by weight of the steel/aluminum/copper content is:
http://U.S. melted and poured steel, or
http://U.S. smelted and cast aluminum (or copper)
Standard rate
25% additional Section 232 duty.
For imports from:
Japan
United Kingdom
Switzerland
Taiwan
Argentina
Republic of Korea
EU member states and several others
The combined normal tariff plus Section 232 tariff is generally capped so the total reaches 15%, unless the ordinary tariff is already 15% or higher.
Canada and Mexico
For qualifying USMCA products from Canada and Mexico, the 25% duty applies only to the http://non-U.S. content of the product. However, the proclamation establishes a minimum effective duty of 15% on the imported product.
Timing
Starts: June 8, 2026, at 12:01 http://a.m. ET
Ends: December 31, 2027, at 11:59 http://p.m. ET
Beginning January 1, 2028, rates revert to the framework established under the earlier proclamation unless further action is taken.
Practical implications for importers
Companies importing agricultural equipment, HVAC systems, forklifts, bulldozers, and other covered machinery should review:
Whether their products are listed in Annex I-C.
The country of origin.
The percentage of http://U.S. steel/aluminum content.
Whether USMCA treatment applies.
Upcoming guidance from http://U.S. Customs and Border Protection on calculating http://U.S. content.
For many importers, the difference between 25%, 15%, and 10% duty treatment could substantially affect landed cost calculations and sourcing decisions through the end of 2027.