Section 232 Adjustments

Yesterday, the White House issued a new presidential proclamation modifying existing Section 232 metal tariffs on steel, aluminum, and copper. Overall, these appear to be minor, targeted adjustments, but they will impact specific product categories. 

The changes take effect at 12:01 a.m. EDT on June 8, 2026. Please see a summary of the key updates below:

1.  Lowered Threshold for US Steel/Aluminum/Copper 

The threshold required for a downstream product to qualify as being made "entirely" from U.S. steel, aluminum, or copper has been reduced from 95% down to 85% by weight. This change is intended to incentivize manufacturers to use more domestic metal. 

2.  Tariff Reductions for Certain Sectors – Valid until 12/31/2027 

The list of derivative products eligible for a temporarily reduced 15% ad valorem duty has been expanded to include: 

• Agricultural equipment 

• Residential HVAC systems and components 

• Mobile industrial equipment and machinery 

3.  Additions (New Flagging Goods) to 232 Metals List 

The following two product categories are no longer exempt and are now subject to derivative metal tariffs: 

• Aluminum lithographic plates 

• Steel racks 

4.  Certain Goods Qualify for Reduced Rates – Valid until 12/31/2027 

For specific goods listed in the proclamation's Annex I-C, the baseline 25% duty can be reduced depending on the country of origin: 

• EU, UK, Japan, South Korea, Taiwan, Switzerland, Argentina, Ecuador, El Salvador, Guatemala:  Follow a balancing logic. If the primary HTS Column 1 rate is 15% or higher, the Section 232 tariff is 0%. If the primary rate is below 15%, the Section 232 tariff will only top it off to reach a combined total of 15%. 

• USMCA Partners (Canada & Mexico): The 25% duty will apply only to the non-U.S. content of the product. However, the total effective duty assessed cannot drop below a 15% floor. 

Any products not listed in Annex I-C continue to be governed by the standard rates established under previous Section 232 guidelines. 

Note: The Secretary of Commerce will be issuing guidance to CBP regarding how to assess and declare U.S. content. 

If you have questions about tariffs or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at  sales@allynintl.com  

Contributor: Robert Freeman

---

About Allyn International

Allyn International provides high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.