Trump updates steel, aluminum tariffs

President Donald Trump signed a proclamation on June 1 revising tariffs tied to steel, aluminum and copper imports, while carving out lower rates for some farm, construction and industrial equipment. The White House said the changes were meant to address national security threats, spur investment in agriculture, housing and manufacturing, and support U.S. production of related goods. The move lowers tariffs on certain derivative products to 15% from 25%, while preserving broader Section 232 tariff tools on strategic metals. The lower rates take effect June 8 and are set to last through December 31, 2027. ### Which products got the clearest break? The White House said agricultural equipment such as combines and harvesters, along with certain other equipment, will face a 15% tariff instead of 25%. The administration also expanded the existing 15% category to include mobile industrial equipment such as bulldozers and forklifts when imported from trade-deal countries eligible for that treatment. (whitehouse.gov) Farm Policy News, citing Wall Street Journal reporting on the proclamation, said the reduced rate also applies to HVAC systems and other heavy industrial goods. Farm Progress, citing Bloomberg, reported the White House described the cut as an effort to boost the industrial economy and provide relief for U.S. farmers. ### How does the 10% rate work? (whitehouse.gov) The White House said foreign companies can qualify for a 10% duty rate on capital equipment if the equipment includes at least 85% U.S. steel or aluminum by weight. The fact sheet describes that threshold as “melted and poured” for steel and “smelted and cast” for aluminum. (farmpolicynews.illinois.edu) Farm Policy News reported that the same concept was described more broadly as products made in another country but consisting of at least 85% U.S. steel, aluminum or copper by weight. The White House fact sheet, however, specifically highlights U.S. steel and aluminum in the 10% rule, so that document is the clearest primary description of the new lower-rate test. (whitehouse.gov) ### What stayed in place for metals themselves? The June 1 proclamation says the administration is still operating under Section 232 national-security findings covering aluminum, steel and copper. The document says Trump had already modified the tariff regime in an April 2 proclamation, including a 50% ad valorem duty on products made of those metals, a 25% duty on derivative products predominantly composed of them, and a temporarily reduced 15% duty on a subset of derivative products including fixed industrial machinery and power equipment. (whitehouse.gov) The White House fact sheet says those tariffs remain part of a broader effort to protect domestic producers and encourage new U.S. investment. It pointed to expected new steelmaking capacity and cited aluminum and copper projects involving Century Aluminum, Emirates Global Aluminum, Highland Copper, Ivanhoe Electric, Rio Tinto and Wieland. (whitehouse.gov) ### Why did the administration say it made the change now? The June 1 proclamation says Commerce Secretary Howard Lutnick informed Trump that “recent circumstances” had affected domestic industries using agricultural equipment, industrial equipment and related products. The White House fact sheet says the temporary tariff relief is intended to “spur near-term investments that will rebuild the Nation’s industrial base.” (whitehouse.gov) Bloomberg, as carried by Farm Progress, reported Trump cited rising costs as a reason for the move. Farm Policy News said the administration was trying to limit what it described, via outside reporting, as collateral damage from broader trade wars that had raised costs for manufacturers, farmers and construction companies. ### Who reacted first? (whitehouse.gov) The Association of Equipment Manufacturers welcomed the move. Kip Eideberg, the group’s senior vice president of government and industry relations, said the action was “an important step towards lowering input costs, strengthening supply chains, and supporting American farmers and manufacturers.” Tuesday trading reflected that response. (farmpolicynews.illinois.edu) Farm Progress reported shares of Deere & Co. rose as much as 5.7% in New York, CNH Industrial jumped as much as 10%, AGCO rose as much as 6.6%, Caterpillar added 4.7%, and Kubota climbed as much as 7.9% in Tokyo. ### What happens next? June 8 is the effective date for the lower tariff rates, according to Farm Progress and the White House materials. (farmprogress.com) December 31, 2027 is the stated end date for the temporary relief period in the White House fact sheet, unless the administration changes the tariff regime again before then. (whitehouse.gov)