As of April 6, 2026, the U.S. has implemented significant changes to Section 232 tariffs on steel, aluminum, and copper — introducing a new framework that will directly impact Canadian manufacturers exporting equipment and components into the U.S. market, according to Agricultural Manufacturers of Canada.
According to AMC, duties are now calculated on the entire value of a product — not just its metal content — substantially increasing potential costs for equipment and component exports.
There is also a new tiered tariff structure, which categorizes products based on metal composition:
- 50% - Products made almost entirely of steel, aluminum, or most copper
- 25% - Equipment and components substantially made of these metals
- 15% (Transitional) - Certain metal-intensive industrial and electrical equipment (through Dec.31, 2027)
- 10% - Products made entirely with U.S.-origin metal (documentation required)
Products containing 15% or less metal are now exempt — creating opportunities for certain components and assemblies.
AMC noted that preferential rates are being explored for certain trading partners (e.g., the UK), highlighting the evolving and negotiated nature of this framework. However, elevated tariffs remain in place for specific countries, reinforcing a broader industrial policy approach.
As it relates to what this means for Canadian manufacturers, the association says:
These changes introduce higher cost exposure, new compliance requirements, and increased uncertainty for Canadian exporters. For ag equipment manufacturers - where steel and aluminum are core inputs - this may affect pricing, supply chains, and competitiveness in the U.S. market.
Manufacturers should review product classifications, assess tariff exposure across their product lines, and evaluate opportunities to mitigate impact - particularly where design, sourcing, or documentation could influence applicable rates.
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