New “U.S. Content” rules could reduce tariffs on certain Canadian industrial equipment
The U.S. Department of Commerce has clarified how “U.S. content” will be calculated for certain Canadian and Mexican products that qualify for preferential treatment under the Canada-United States-Mexico Agreement (CUSMA/USMCA). The guidance is particularly relevant to Canadian companies exporting certain mobile industrial equipment and parts to the United States, including forklifts, loaders, backhoes, bulldozers, tractors, mobile cranes and similar machinery. Under the new rules, qualifying products can receive a reduced Section 232 tariff on the portion of their value that is attributable to U.S. content. Up to 40% of the product's value can qualify for this treatment, with the