Section 232 Tariffs on Heavy Equipment: AED Urges Immediate Exemptions

AED Mobilizes Industry to Fight Section 232 Tariffs on Equipment

The Associated Equipment Distributors (AED) is sounding the alarm over the U.S. administration’s expansion of Section 232 tariffs. The trade group is urging its members—who distribute and manufacture construction and agriculture equipment—to lobby federal lawmakers. Their goal: remove heavy equipment and related supplies from the new list of tariffed items.

In August, the U.S. Department of Commerce added over 400 new “derivative products” to the steel and aluminum tariff list. This move includes numerous components critical to the heavy equipment industry. These items are now subject to a 50% tariff on their steel and aluminum content. Non-metallic parts still face standard tariffs. AED argues that these changes will inflate operational costs and disrupt supply chains across the sector.

To counter the impact, AED launched a grassroots advocacy campaign on September 8. They are providing members with customizable email templates and instructions to contact their senators and representatives. AED emphasizes the urgency, warning of price hikes and widespread uncertainty in both the construction and agriculture equipment markets.

Industry Impact of Section 232 Tariffs on Heavy Equipment

The ripple effects of these new Section 232 tariffs on heavy equipment could be substantial. Distributors face increased import costs, which are likely to be passed on to end users. This would slow infrastructure development and agriculture projects, particularly in regions that rely heavily on imported machinery and parts.

Moreover, the 50% tariff rate on steel and aluminum content significantly penalizes U.S.-based dealers and manufacturers. These companies may source globally but assemble domestically—now facing steep penalties for doing so. AED highlights this discrepancy as unfair and economically harmful, especially for small and mid-sized enterprises already dealing with supply chain strain.

AED is also urging members to report back any responses they receive from elected officials. The group has assigned staff to monitor and escalate these interactions, reinforcing their case in Washington. The message is clear: action now can mitigate long-term damage to the industry.

SuperMetalPrice Commentary:

This tariff expansion under Section 232 represents more than a policy shift—it is a direct pricing disruptor for critical sectors. The construction and agriculture equipment markets rely on a complex, globalized supply chain. Tariffing imported steel and aluminum components at 50% introduces a non-market cost burden that undermines competitiveness. AED’s proactive lobbying strategy is not just reactive—it’s essential. As prices rise, so too will the urgency for industry stakeholders to engage with lawmakers. SuperMetalPrice expects ripple effects across the base metals market, particularly in sectors linked to infrastructure and machinery demand.