Tweaks to federal tariffs on certain metals could provide relief to some US equipment makers, but insiders say the impact in the recycling industry will be minimal.
A proclamation from the White House last week adjusted some of the Section 232 tariffs on steel, aluminum and copper that were enacted earlier this year. Changes are to remain in effect through the end of next year.
Among the alterations:
- A tariff reduction from 25% to 15% for certain types of equipment, such as combines and harvesters, as well as HVAC components and other equipment derived from steel and aluminum
- A 10% tariff reduction in products made in another country from at least 85% US metals
- A lower threshold for products to be considered made “entirely” from American steel, from 95% to 85%
Of note, according to the Association of Equipment Manufacturers (AEM), the revisions create a preferential 10% tariff rate for imported capital equipment that uses mostly US-produced metal inputs. It applies to 10 nations and the European Union.
The revisions affect some of the equipment used in the canning industry but don’t go far enough to provide relief, according to Scott Breen, president of the Can Manufacturers Institute. For example, tinplate steel and aluminum are still at a 50% tariff rate under Section 232, while imported filled cans remain at 0%.
“The main changes we’ve requested to rectify this tariff structure that creates a significant advantage for foreign filled cans, including many food cans from China, have still not been implemented,” he said. “We will continue to engage the Trump administration in the hopes we can work together to put America first across the American metal can value chain.”
Adam Shaffer, vice president of international trade and global affairs for the Recycled Materials Association (ReMA), said the April overhaul provided more clarity for members of the recycling industry that use equipment not made domestically. They removed some of the uncertainty around importing equipment and decreased the tariffs on those items; many high-throughput shredders and optical sorters, for example, are made in Germany and Italy.
That’s not the case with these latest revisions, he said.
“It does not appear that many, if any, of the products that got tariff relief are ones that are used by our industry,” he said. “We see no significant impact.”
But there is a broader impact on some US manufacturers, according to Kip Eideberg, AEM senior vice president of government and industry relations. He said the update lowers input costs and will provide manufacturers the runway they need to expand domestic capacity.
The latest numbers from the US Census Bureau seem to support the notion of increasing domestic production. The Bureau found the amount of foreign steel entering the nation to be about 30% lower in April 2026 than the prior April, while domestic production is up nearly 5 million tons since the start of 2025.
Even so, tariffs have proven problematic for some manufacturers. Caterpillar expects to pay between $2.2 billion and $2.4 billion in tariffs this year, although CEO Joe Creed said that’s below the company’s original estimate of $2.6 billion. And Volvo CE announced earlier this year it was halting production of its Robbak articulated haulers due to tariffs and other cost increases globally.
Section 232 focuses on strategic materials and gives the president authority to restrict imports if they are deemed to “threaten or impair” national security, according to the White House.
Steel Manufacturers Association Executive Vice President Brandon Farris called Section 232 “the most consequential government action impacting manufacturing in a generation” but called upon the administration to bolster enforcement. Pushing for passage of the Leveling the Playing Field 2.0 Act, he said, would do so by modernizing trade enforcement tools that he claims have allowed importers to misclassify products and undervalue imports, lowering the tariffs they end up paying.
The 232 tariffs “have revitalized the American steel industry,” he said. “Together, stronger enforcement and stronger laws will provide the certainty American manufacturers need to compete and grow.”
