United States customs now counts US-made parts and US-made steel, aluminum and copper as tax-free US content from Oct. 14, 2026.<\/p>\n
The US Commerce Department told customs on Oct. 14, 2026 how to count American parts and metal in Canadian and Mexican goods facing metal tariffs1<\/a><\/sup>.<\/p>\n The Bureau of Industry and Security (BIS), part of the Department of Commerce, published the guidance as a notice in the Federal Register. It applies to goods entered on or after 12:01 a.m. Eastern Time on Oct. 14, 20261<\/a><\/sup>.<\/p>\n In short, a Canadian or Mexican product can now count more of its value as "U.S. content", which pays no 25% metal tariff. Parts made, grown or substantially changed in the United States count, and so does steel, aluminum or copper first produced there1<\/a><\/sup>.<\/p>\n The notice gives U.S. Customs and Border Protection (CBP), the US border and customs agency, a definition of "U.S. content"1<\/a><\/sup>. This definition matters because the 25% tariff falls only on the part of the product that is not U.S. content.<\/p>\n Under the notice, "U.S. content" means two things1<\/a><\/sup>:<\/p>\n The second item is new. A product may hold US steel that was not part of a finished US component. That metal value can now count as U.S. content too1<\/a><\/sup>.<\/p>\n The notice is one page long. It says questions about a specific product should go to CBP1<\/a><\/sup>.<\/p>\n The guidance serves one clause of a presidential order, Proclamation 11032 of June 1, 20262<\/a><\/sup>. That order adjusted the tariffs on aluminum, steel and copper that the United States imposes under Section 232, a national security trade law.<\/p>\n Clause (2)(d) of the proclamation covers products of Canada and Mexico<\/strong> that qualify for preferential treatment under the United States\u2013Mexico\u2013Canada Agreement (USMCA), the North American trade deal2<\/a><\/sup>. It applies to the aluminum and steel goods listed in the proclamation’s Annex I-C2<\/a><\/sup>.<\/p>\n A CBP message to the trade dated June 5, 2026 explains which entries use this treatment. It ties the Canada and Mexico rule to steel derivative goods in subdivision (c)(xi) of the tariff schedule’s note 163<\/a><\/sup>. In the same message, CBP describes subdivision (c)(xi) as mobile industrial equipment<\/strong>3<\/a><\/sup>.<\/p>\n The proclamation explains why these machines got lower tariffs. It says construction equipment is essential for rebuilding US industry, and material-handling equipment keeps factories and warehouses working2<\/a><\/sup>.<\/p>\n CBP’s June message lists the tariff codes that received reduced duty rates. They include forklifts and other lifting trucks (heading 8427), bulldozers, graders and excavators (heading 8429), and tractors (heading 8701)3<\/a><\/sup>.<\/p>\n Under the proclamation, a 25% duty<\/strong> applies only to the non-U.S. content of a qualifying Canadian or Mexican product2<\/a><\/sup>. The non-U.S. content is the total value of the product minus the value of its U.S. content.<\/p>\n There is a floor. The total effective duty on the imported product cannot be less than 15% of its value<\/strong>2<\/a><\/sup>. So even a product with a lot of American content still pays at least 15%.<\/p>\n CBP’s June message adds a second limit at the border. Importers may report U.S. content at a zero rate only up to 40% of the entered value<\/strong> of the goods3<\/a><\/sup>. Any U.S. content above 40% goes on the first line and pays the 25% rate3<\/a><\/sup>.<\/p>\n A simple example shows the effect. Take a machine with an entered value of $100,000, of which $40,000 is U.S. content. The importer pays 25% on $60,000, or $15,000. That equals 15% of the full value, the floor the proclamation sets.<\/p>\n CBP’s June message sets out how importers and customs brokers declare these goods3<\/a><\/sup>. The importer splits one product into two lines on the entry summary.<\/p>\n The steps are:<\/p>\n The Commerce notice does not change these lines. It changes what value an importer may put on the second line. More US-made metal can now count toward it1<\/a><\/sup>.<\/p>\n The proclamation itself ordered it. Clause (2)(d) says the Secretary of Commerce shall issue guidance to CBP on how to assess "U.S. content"2<\/a><\/sup>. The Secretary passed this task to the Deputy Assistant Secretary for Technology Security, who signed the notice1<\/a><\/sup>.<\/p>\nWhat does the Commerce notice on U.S. content say?<\/h2>\n
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Which goods from Canada and Mexico are covered?<\/h2>\n
How is the 25% duty on the non-US part worked out?<\/h2>\n
How do importers report U.S. content on the entry?<\/h2>\n
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Why did Commerce issue the guidance now?<\/h2>\n
What counts as U.S. content<\/h4>\n