News and Articles

• President Trump signed a revised Section 232 proclamation on June 1, 2026, reducing tariffs on agricultural equipment from 25% to 15%, effective until December 31, 2027.
• Foreign-made capital equipment containing at least 85% US-cast steel or aluminium by weight now qualifies for a 10% preferential tariff rate under the new proclamation.
• US hot-rolled coil prices held above USD 1,100 per ton in early June 2026, with domestic capacity utilisation at 81.1% and weekly production at 1.87 million net tons.
• The US became the third largest steel-producing nation in 2025, with over 4 million tons of new crude steelmaking capacity scheduled to come online within two years.
• US manufacturing grew at its fastest rate in four years during May 2026, its fifth consecutive month of expansion, supporting underlying demand for steel products.

The US steel market received fresh policy direction on June 1, 2026, when President Trump signed a revised Section 232 proclamation modifying metals tariff structures to support domestic manufacturing and provide targeted duty relief for certain industrial equipment categories. The adjustments, effective until December 31, 2027, reduce tariffs on agricultural equipment including combines and harvesters from 25% to 15%, while extending the category of mobile industrial equipment qualifying for a 15% duty rate when sourced from countries with trade agreements with the United States.

A key provision in the proclamation allows foreign-made capital equipment to qualify for a reduced 10% duty rate, provided that the steel or aluminium content of the equipment consists of at least 85% US-melted or US-cast material by weight. The measure is designed to encourage greater use of American-produced steel in imported machinery, creating a direct link between tariff relief and procurement from domestic mills. Administration officials cited persistent foreign overcapacity, particularly from China and Southeast Asia, as the basis for maintaining broad tariff protections while introducing these targeted adjustments.

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The domestic steel market is operating at elevated levels as these changes take effect. In the week ending May 30, 2026, US raw steel production reached 1.87 million net tons, with capacity utilisation at 81.1%. Hot-rolled coil at US Midwest mills was priced at approximately USD 1,105 per ton in early June, up USD 10 from the prior week. Service centre inventories have remained at their lowest levels in several years, reducing the ability of buyers to draw down stock rather than purchase at current spot prices.

The US steel industry has expanded measurably since tariff protections were introduced. The country became the third largest steel-producing nation in the world in 2025, moving ahead of several rival economies. Over 4 million tons of new crude steelmaking capacity is set to become operational within the next two years, with new plants under construction in West Virginia, Arkansas, and South Carolina. US manufacturing activity grew at its fastest rate in four years during May 2026, its fifth consecutive month of expansion.

Procurement teams sourcing steel for construction, manufacturing, and industrial equipment projects should account for the continued price support provided by the tariff environment. Companies importing capital equipment that incorporates predominantly US-origin steel now have a pathway to reduce total landed cost through the 10% preferential rate introduced under the June 1 proclamation. For buyers of agricultural equipment, the reduction from 25% to 15% creates a direct cost benefit that may influence sourcing decisions for the remainder of the 2026 to 2027 tariff window.