On October 14, 2026, the Bureau of Industry and Security (BIS) issued guidance regarding calculation of “U.S. content” for purposes of the application of Section 232 metal tariffs to mobile industrial equipment and machinery qualifying for preference under the US-Mexico-Canada Agreement (USMCA).
Proclamation 11032 of June 1, 2026 reduced Section 232 tariff rates on certain USMCA qualifying mobile industrial equipment and machinery. Specifically, USMCA-qualifying equipment and machinery were subject to Section 232 metal tariff of 25% only on the non-U.S. content of the product. The proclamation did not define “US content” but indicated that guidance to US Customs and Border Protection (CBP) for purposes of this assessment would be forthcoming.
The October 14 guidance issued by BIS to CBP states that “US content” for purposes of calculating tariffs for USMCA qualifying mobile industrial equipment and machinery means:
- The value of the product attributable to parts wholly obtained, entirely produced, or substantially transformed in the United States.
- To the extent not already accounted for in the first component, the value of the product attributable to steel melted and poured in the United States, aluminum smelted and cast in the United States, and/or copper smelted and cast in the United States.
The guidance is effective with respect to products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 14, 2026. The Husch Blackwell International Trade and Supply Chain team will continue to monitor and provide updates as they become available. If you have company specific questions or concerns, please contact Stephen Brophy or Moushami Joshi.