Trump cuts duties on HVAC, farm gear

President Donald Trump on June 1 cut tariffs on some finished goods made from steel, aluminum and copper, narrowing part of the metals regime he expanded earlier this year. A White House fact sheet said the changes apply to agricultural equipment such as combines and harvesters and to certain other equipment, lowering the duty rate from 25% to 15%. A separate presidential proclamation said the revisions were based on recommendations from Commerce Secretary officials monitoring the effect on domestic industries that use the metals. The broader Section 232 tariff structure on imported steel, aluminum and copper remains in place. ### Which products did Trump actually exempt or reduce? The White House said agricultural equipment, including combines and harvesters, and certain related products were moved from a 25% tariff to a 15% tariff, not to zero. The same fact sheet said the administration also expanded a 15% tariff category for industrial equipment to include mobile industrial equipment such as bulldozers and forklifts when imported from countries covered by trade deals. (whitehouse.gov) June 1 documents from the White House describe the move as a temporary adjustment inside the existing Section 232 framework. The proclamation says Trump had previously imposed a 50% ad valorem duty on products made of those metals and a 25% duty on derivative products predominantly composed of them, while some fixed industrial machinery and power equipment had already been placed at a temporarily reduced 15% rate. (whitehouse.gov) ### Why did the administration say it changed the tariff rates? The proclamation said the Commerce secretary told Trump that “recent circumstances” were affecting U.S. industries that use agricultural equipment, industrial equipment and machinery, and related products. The White House fact sheet said the goal was to “spur investment in American agriculture, housing, and manufacturing” and facilitate U.S. production of related products. (whitehouse.gov) The White House also said foreign companies could qualify for a 10% duty rate on some capital equipment if the equipment contains at least 85% U.S. melted-and-poured or smelted-and-cast steel or aluminum by weight. The administration said the changes were meant to encourage use of more U.S. metal content. (whitehouse.gov) ### Does this change the wider steel, aluminum and copper tariff program? Section 232 remains the legal basis for the metals tariffs. The June 1 proclamation cites earlier proclamations on steel and aluminum from March 8, 2018, and on copper from July 30, 2025, and says the administration is still acting on national security grounds under the Trade Expansion Act of 1962. (whitehouse.gov) The White House fact sheet said the tariff changes are temporary and run through December 31, 2027. The administration paired that with claims about new U.S. metals investment, including more than 4 million tons of crude steelmaking capacity expected to come online in the next two years and a planned aluminum smelter joint venture in Oklahoma involving Century Aluminum and Emirates Global Aluminum. (whitehouse.gov) ### How does this fit with the separate tariff-refund court fight? SCOTUSblog reported on June 1 that the Justice Department had filed notice with the Court of International Trade that it would appeal a judge’s authority to order broad refunds of tariffs the U.S. Supreme Court had ruled illegal under the International Emergency Economic Powers Act, or IEEPA. SCOTUSblog said the dispute centers on whether refunds must go to all importers who paid those tariffs or only to importers that sued. (whitehouse.gov) That case is separate from the Section 232 metals tariffs Trump adjusted on June 1. But the two matters are running in parallel: the administration is refining one tariff program while fighting over the scope of refunds tied to another. SCOTUSblog said the appeal goes next to the U.S. Court of Appeals for the Federal Circuit. (scotusblog.com) ### What should importers and manufacturers watch next? December 31, 2027 is the date in the White House fact sheet for when these temporary Section 232 tariff adjustments expire, unless Trump changes them again before then. Importers of farm and industrial equipment will also need to watch product classification and country-of-origin treatment, because the proclamation and fact sheet tie some lower rates to specific categories and trade-deal eligibility. (whitehouse.gov) The next legal milestone in the refund dispute is the administration’s appeal in the Federal Circuit. SCOTUSblog reported that the fight now turns on the reach of any refund order and which importers, if any, can collect beyond the companies that brought suit. (scotusblog.com) (whitehouse.gov)