Overview
- The Commerce Department published the procedures Friday in the Federal Register, opening applications for partial cuts to Section 232 tariffs on steel and aluminum used in U.S. medium and heavy vehicles.
- Rates can fall from 50% to as low as 25% only for import volumes tied to the extra U.S. production capacity that companies pledge to build.
- To qualify, firms must operate in Mexico or Canada, meet USMCA rules of origin, prove the metal was melted and poured in North America, supply the heavy‑vehicle sector, and submit detailed U.S. project plans.
- Commerce will set authorized import volumes and require quarterly reports, and CBP can revoke the break and collect full duties if firms miss build or production milestones.
- Light vehicles are excluded, which limits relief for much of Mexico’s auto trade, and the rule implements President Trump’s October 2025 Proclamation 10984 ahead of the late‑May USMCA review.