New Section 232 Action: What The June 2026 Aluminum, Steel & Copper Proclamation Means For Your Imports

Topline summary: On June 1, 2026, President Trump amended the Section 232 tariff framework for aluminum, steel, and copper. Importers of agricultural, industrial, and mobile equipment may qualify for temporarily reduced rates of 10–15%, while certain furniture parts, lithographic plates, and steel racks are newly dutiable for the first time. With a December 31, 2027, sunset on all temporary reductions, importers should audit their HTS classifications now to avoid overpaying or underpaying.

On June 1, 2026, the President issued Proclamation 11032, “Further Adjusting the Tariff Regimes for Imports of Aluminum, Steel, and Copper Into the United States,” amending the April 2026 Section 232 framework (Proclamation 11021). U.S. Customs and Border Protection (CBP) followed on June 5 with implementation guidance in CSMS #68855869. The changes take effect for goods entered for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 a.m. ET on June 8, 2026. 

This is not a uniform tariff cut. The proclamation does two opposite things at once. It reduces Section 232 rates on a large block of machinery and equipment, while simultaneously adding new products to the duty regime for the first time. If you import equipment, the change may help you. If you import certain furniture parts, lithographic plates, or steel racks, you may have just become newly dutiable.  

What Changed on June 8 

1. New products pulled into the Section 232 net 

Proclamation 11032 expands product coverage to include items previously outside the aluminum and steel tariffs — the proclamation specifically names aluminum lithographic plates and steel racks, treated as derivative products to prevent circumvention. The CBP guidance identifies the following Chapter 1–97 classifications as newly subject to Section 232 duties under Proclamation 11021, as amended: 

If any of these HTS lines appear on your entries, duties now apply where they did not before. Confirm classification before your next entry summary. 

2. Reduced rates for agricultural, industrial & mobile equipment 

The bulk of the action goes the other way. The proclamation expands the temporarily-reduced 15% ad valorem derivative category to cover agricultural equipment and certain residential-use HVAC systems and components, and temporarily modifies the tariffs on mobile industrial equipment and machinery. CBP’s guidance lists a large set of Chapter 84, 85, and 87 classifications now eligible for reduced Section 232 rates — including tractors (8701 series), self-propelled work trucks (8427), construction and material-handling machinery (8429), agricultural machinery (8432, 8433), HVAC equipment (8415), and motor-vehicle components (8703, 8708). 

The reduced-rate mechanics are not a flat percentage. New HTSUS headings 9903.82.20 through 9903.82.26 set duty based on country of origin and the product’s Column 1 duty rate. The structure works roughly as follows: 

These reduced rates are temporary — they run through December 31, 2027. On January 1, 2028, the affected goods revert to the higher standard derivative rates. Plan sourcing and pricing with that sunset in mind. 

3. The “entirely American” threshold drops from 95% to 85% 

To qualify a product’s metal content as made “entirely” from U.S. aluminum, steel, or copper — which reduces the applicable duty — the threshold falls from 95% to 85% of the relevant metal’s weight, effective June 8. This is a real opportunity: derivative articles that narrowly missed the old bar may now qualify for lower rates. The requirements are cumulative, so a product spanning more than one subdivision must satisfy each applicable threshold (aluminum smelted and cast, steel melted and poured, or copper smelted and cast in the U.S.). 

The USMCA Two-Line Reporting Trap 

The single most error-prone piece of this guidance is how to claim the U.S.-content benefit on Canadian and Mexican USMCA-qualifying derivative steel. CBP requires the value to be split across two entry summary lines: 

• First line (9903.82.20): report the total quantity and the value of the non-U.S. content plus any U.S. content exceeding 40% of the article’s value. Assess the 25% Section 232 duty on this line. Use SPI code “S.” 
• Second line (9903.82.21): report quantity as 0 and the value of the U.S. content, capped at 40% of the total entered value, at a 0% rate. Use SPI code “S.” 

The same Chapter 1–97 HTS and the same country of origin must appear on both lines, and all other duties — including antidumping and countervailing duties — still apply. Do not report more than 40% of the value as U.S. content on the second line. CBP warns that fraud or deliberate misrepresentation of U.S. content will draw penalties to the full extent of the law. 

Other Provisions Worth Flagging 

• Russia stays at 200%. Aluminum and aluminum derivatives that are products of Russia — or that use any primary aluminum smelted or cast in Russia — remain at the 200% rate under 9903.85.67/.68 and cannot be reported under 9903.82.03. 
• No Section 122 relief on certain lines. Imports under 9903.82.03, 9903.82.13, and 9903.82.21 are not eligible for the Section 122 exemption (9903.03.06). 
• Melt-and-pour / smelt-and-cast reporting continues. Keep reporting countries of melt and pour for steel and smelt and cast for aluminum. CBP will announce separately when copper smelt-and-cast reporting goes live for the four listed 8544 classifications. 
• Pending instructions. CBP has reserved separate guidance for headings 9903.82.18 and 9903.82.19, so watch for a follow-up CSMS. 

Why This Matters for Your Bottom Line 

Section 232 duties stack on top of regular Column 1 duties, and in many cases on top of antidumping/countervailing duties and other trade-remedy tariffs. A misclassification here is not a rounding error — it is the difference between 0%, 10%, 15%, 25%, or 50% additional duty on the full customs value. Overpaying because you missed a reduced-rate heading is lost margin; underpaying because you missed a newly covered product is exposure to penalties, liquidated damages, and prior-disclosure headaches. 

How Diaz Trade Law Can Help 

This update rewards importers who get ahead of it and punishes those who assume their entries are unaffected. Have Diaz Trade Law review this Section 232 update and how it impacts your imports. 

Our team can: 

• Audit your active HTS classifications against the newly covered and newly reduced product lists to confirm the correct Chapter 99 heading and rate; 
• Assess whether your derivative products now qualify under the lowered 85% U.S.-content threshold — and capture the savings; 
• Set up compliant USMCA two-line reporting for Canadian and Mexican steel derivatives, with documentation that withstands a CBP U.S.-content challenge; 
• Map your exposure to the December 31, 2027, sunset of the temporarily reduced rates; 
• Respond to CBP inquiries, file prior disclosures, and pursue refunds where duties were overpaid. 

Learn more: 

• Section 232 Valuation in a Gray Area: What Importers Need to Know 
• Commerce Releases Applications for Onshoring Agreements to Reduce Section 232 Tariffs 
• Department of Commerce Issues New Duty-Free Code for 232 Tariffs 
• High Tariffs, High Stakes: The Rise in Customs Fraud and Enforcement Risk 
• Live Resource: Tariffs and Trade Deals 
• Webinar: Navigating Tariff Challenges: Mitigation Tools & Tactics 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.