On June 1, 2026, the US Government announced an executive order that will reduce the tariff regimes for imports of aluminum, steel, and copper derivatives. The tariff rates and origin thresholds will change effective June 8, 2026.
This change will affect importers of copper derivative products, specifically agricultural equipment, certain HVAC systems, mobile industrial equipment and machinery, aluminum lithographic plates, and steel racks.
The following is a summary of the modifications:
- Agricultural equipment and certain HVAC systems and components, predominantly for residential use, are being moved to a category of derivative products subject to a temporarily reduced 15% ad valorem duty.
- Tariffs imposed on mobile industrial equipment and machinery have been temporarily lowered.
- Aluminum lithographic plates and steel racks have been newly included within the product coverage to ensure they are subject to the appropriate derivative tariffs.
- The threshold for imported products to qualify as made "entirely" from American aluminum, steel, or copper has been modified from 95 % to 85 %.
- From June 8, 2026, to December 31, 2027, a specific partner list of countries, including Argentina, Ecuador, El Salvador, Guatemala, Japan, the Republic of Korea, Liechtenstein, Switzerland, Taiwan, the United Kingdom, or a member nation of the European Union, will receive special adjusted rates. These new rates will essentially cap their combined import tax at 15%, with products using American-smelted metals reducing that further to 10%.
- Canadian and Mexican goods that qualify for preferential tariff treatments under the US-Mexico-Canada Agreement (CUSMA/USMCA/T-MEC), a duty of 25% will apply to the non-US content of the product, with guidance.
- These changes are effective for goods entered for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 a.m. EST on June 8, 2026.
For importers of these goods, these changes could represent a significant reduction in your owed tariffs beginning on June 8th, 2026.
For the full executive order, click here.