United States President Donald Trump says he’s relaxing tariffs on certain products that use steel, aluminum and copper, such as agricultural machinery and HVAC equipment, to 15 per cent from 25 to provide economic relief for sectors that use these products. His administration also said it would reduce the U.S. sourcing threshold so that some foreign products may qualify for a 10 per cent tariff rate — down from 15 per cent — if they contain 85 per cent U.S. metals — down from 95 per cent. Trump announced the changes, which are effective June 8, in a proclamation on Monday, saying the products play an important role in the U.S. economy. “Among other things, the Secretary (of Commerce) has informed me that recent circumstances have affected and are affecting domestic industries that use agricultural equipment, industrial equipment and machinery, and other related products,” Trump said . The order will modify Section 232 tariffs that invoked national security concerns to raise tariffs on aluminum, steel and copper products. Industrial mobile equipment, including forklifts and bulldozers, will also be eligible for a 15 per cent tariff. But the tariffs will only drop if the products are imported “from trade deal countries that are entitled to such treatment ,” which some analysts believe will include countries such as Canada and Mexico that have trade agreements with the U.S. Canada has many companies that produce some of the covered products, such as tractors, harvesting equipment and HVAC equipment. Some, but not all of these products, were previously carved out from tariffs under different exemptions. The Trump administration has until now repeatedly raised tariffs on the metals and extended the range of products subject to tariffs. But his latest order also expanded the tariff net, adding aluminum lithographic plates and steel racks to the list of items that face a 25 per cent tariff rate. Canadian steel and aluminum producers have suffered since the 50 per cent tariffs on their products were enacted, with T hursday marking their one-year anniversary. “That knocked us out of the market,” said Butch Mandel, chief executive of Welded Tube of Canada Corp., a tubing company based in Concord, Ont. “You just couldn’t compete.” Mandel said the tariffs are creating new opportunities for U.S. producers of steel and downstream steel products in their home market and that his competitors are “giddy” about their sales prospects. 'The impacts are massive': U.S. tariff change pushes Canadian manufacturers to the brinkThe United States is losing its grip on Canada's steel market However, he said the situation has improved in recent months, and his company’s sales to the U.S. have been growing again, although not enough to fully offset the impact of the tariffs. The war in the Middle East may also be contributing to supply chain snarls by cutting off steel supplies into the U.S., he said. The overall impact is that steel prices are rising in the U.S., but Mandel said customers are willing to pay more if they know a product can be produced on time. “We haven’t recaptured most of what we lost,” he said. “But we are able to get products into the U.S. market even with the 50 per cent tariff.” • Email: gfriedman@postmedia.com