US Lowers Some Tariffs on Steel and Aluminum Derivatives... 15% Rate for Korean Forklifts and Bulldozers

Tariff on Agricultural Equipment and HVAC Systems Also Reduced to 15%

Tariff Burden Eased for $2.3 Billion Worth of Exported Products

The United States has decided to lower the tariff rate on certain industrial machinery, including Korean-made forklifts, bulldozers, and tractors, to 15%.

On June 2, the Ministry of Trade, Industry and Energy announced that the U.S. government had issued a proclamation on June 1 (local time), revising Section 232 tariff measures on steel, aluminum, and copper derivative products.

According to the revised measures, certain mobile industrial machinery, such as forklifts, bulldozers, and tractors, imported from countries that have reached a tariff agreement with the United States—including Korea, Japan, the United Kingdom, Switzerland, Taiwan, and European Union (EU) member states—will see the Section 232 tariff rate reduced from the previous 25% to 15%.

In addition, agricultural equipment and HVAC (heating, ventilation, and air conditioning) systems, which were previously subject to a 25% tariff, will uniformly be subject to a 15% tariff regardless of any tariff agreement. This tariff reduction will be implemented temporarily from June 8, 2026 (local time) until December 31, 2027.

The requirement for using U.S.-made steel has also been eased. Previously, the U.S. government applied a lower 10% tariff rate to products using at least 95% U.S.-made steel, but under the new revision, this threshold has been lowered to 85%.

On the other hand, some products have newly become subject to tariffs. Aluminum lithographic plates and steel racks, which were not previously covered by Section 232 tariffs, will now be subject to a 25% tariff under the revised measures.

The Ministry of Trade, Industry and Energy estimated that the value of Korean exports to the U.S. expected to benefit from this tariff reduction is approximately $2.3 billion. This figure is based on last year’s export value to the U.S. of products with reduced tariff burdens, as defined by the Section 232 proclamation announced by the U.S. on April 2.

An official from the ministry stated, “We plan to continue friendly consultations with the U.S. side to minimize the impact on our companies and to maintain a balance of benefits under the existing Korea-U.S. tariff agreement.”

This content was produced with the assistance of AI translation services.