President Donald Trump has signed a proclamation tweaking the Section 232 national security tariffs on aluminum, steel, and copper imports. The move lowers tariffs on some products while expanding them on others, all in the name of boosting U.S. manufacturing.

The proclamation cuts tariffs on certain steel and aluminum derivative products—like agricultural machinery and residential heating, air conditioning, and ventilation equipment—from 25% to 15%. Mobile industrial equipment, such as bulldozers and forklifts, will also face a 15% tariff, but only when imported from trade deal countries that qualify for that treatment, the White House said.

Foreign companies can get an even lower 10% tariff if their capital equipment includes at least 85% U.S.-melted and poured or smelted and cast steel or aluminum by weight.

On the flip side, the order adds two new categories to the 25% tariff list: steel racks and aluminum lithographic plates. The changes take effect for goods imported or withdrawn from bonded warehouses after 12:01 a.m. EST on June 8 and will remain in place until December 31, 2027. The goal, per the White House, is to "spur near-term investments" aimed at rebuilding the American industrial base.

What's Really Driving Factories?

The tariff changes come as U.S. manufacturing is enjoying a resurgence—a trend Trump has been eager to promote since returning to the Oval Office. The manufacturing PMI hit a four-year high in May, suggesting the strategy is working.

But a closer look tells a different story. Since the tariff-related market lows in April 2025, the iShares U.S. Manufacturing ETF (MADE) has surged 78%, outperforming the tech-heavy Invesco QQQ Trust (QQQ)'s 72% gain. Yet the ETF's top-performing stocks, like Bloom Energy Corp. (BE) and Ondas Holdings Inc. (ONDS), are largely tied to AI infrastructure. That suggests the manufacturing rally is being driven more by demand from the AI sector than by tariff-induced reshoring.

Meanwhile, the Trump administration on Friday appealed a federal court order that expanded tariff refund eligibility to all U.S. importers—not just companies that had sued over the duties. This move could stop refunds already being processed. The Department of Justice also challenged Judge Richard Eaton's requirement that CBP chief Rodney Scott testify in person, arguing that as a senior presidential appointee, he cannot be compelled to appear and that deputies should be allowed to testify instead.

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