Trump Sets 232 Tariff Breaks for Mobile Industrial, Ag and HVAC Equipment on June 8
Agricultural equipment, mobile industrial equipment and machinery, and heating, ventilation and air conditioning equipment will all get breaks from Section 232 metals tariffs under a proclamation issued by President Donald Trump late on June 1. The tariff reductions take effect at 12:01 a.m. ET June 8.
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On the other hand, the proclamation also adds steel racks and aluminum lithographic plates to the list of goods subject to 25% Section 232 tariffs on steel and aluminum derivatives, respectively. Those changes also take effect June 8.
Under the proclamation, tariff subheadings covering agricultural equipment and HVAC equipment will be added to the Annex III list of goods temporarily subject to a 15% Section 232 tariff until the end of 2027. The newly added subheadings had previously been subject to the 25% tariff on derivatives.
A list of subheadings covering mobile industrial equipment and machinery will be eligible for temporary tariff breaks if they are imported from certain countries or qualify for USMCA treatment. Such goods from countries that have signed tariff deals with the U.S., such as Japan, South Korea, Taiwan, the U.K. and the EU, among other countries, will face a 15% “all-in” rate inclusive of most-favored nation duties. For mobile and industrial equipment and machinery that qualifies for USMCA treatment, the normal 25% tariff will only apply to non-U.S. content, though the total Section 232 tariff can’t fall under 15%.
The temporary tariff reductions for mobile industrial equipment expire at the end of 2027. If none of the tariff breaks listed above apply, the good will be subject to the normal 25% tariff, or a 10% tariff if made entirely using U.S. steel or aluminum.
The proclamation also changes the threshold for when a good is made “entirely” of steel, aluminum or copper and qualifies for a 10% Section 232 tariff. Previously that threshold had been 95% U.S. metal. The proclamation lowers that threshold to 85%.