The temporary relief in tariffs, aimed at boosting near-term investment, will remain in effect through December 31, 2027.
President Donald Trump signed the proclamation on June 1.
It outlines reducing tariffs on agricultural equipment, such as combines and harvesters, from 25% to 15%. It also expanded the list of industrial equipment eligible for a 15% tariff rate to include mobile machinery, such as bulldozers and forklifts, imported from countries covered by US trade agreements.
The proclamation also allows foreign companies to qualify for a reduced 10% tariff rate on certain capital equipment if at least 85% of the steel or aluminum used by weight is melted and poured, or smelted and cast, in the US.
These measures are aimed at addressing national security concerns, encouraging investment in US agriculture, housing, and manufacturing, and supporting domestic production of steel, aluminum, and related products.
The White House said more than 4 million tonnes of new steelmaking capacity is expected to come online in the US over the next two years, while investments are also being made in aluminum smelting and copper mining and processing projects.
The move forms part of Trump’s broader use of Section 232 tariffs on steel, aluminum, and copper imports, which the administration says have helped boost domestic production and attract investment into US metals manufacturing.
Trump has increasingly relied on Section 232 national security authorities during his second term to impose tariffs and pursue trade negotiations across sectors, including metals, automobiles, semiconductors, critical minerals, timber, and pharmaceuticals.
(Edited by : Tenzin Norzom)
First Published: Jun 2, 2026 7:26 AM IST
