The US Department of Commerce (USDOC) introduced a pathway for steel and aluminum producers in Canada and Mexico to halve their Section 232 tariffs from 50% to 25%.

To qualify, companies must provide metals to US manufacturers of automobiles or medium- and heavy-duty vehicles. This policy requires a binding commitment to build or expand primary production plants within the US. Simple upgrades to existing facilities do not meet the criteria for this lower duty.

Eligible applicants must submit certified documents detailing current operations and specific construction milestones for planned US sites, such as land purchases and production timelines.

The tariff adjustment applies only to export volumes matching the projected annual output of the new American facility for a set duration. This measure targets imports of items like steel coils and aluminum sheets used in the production of cars and larger trucks.