Trump Cuts Tariffs On Farm And Industrial Equipment From 25% To 15%

US President Donald Trump signed a presidential proclamation on Monday reducing import duties on a range of agricultural and industrial equipment from 25% to 15%, effective 08 June 2026 and running through the end of 2027.

The move applies to farm machinery including combines and harvesters, as well as mobile industrial equipment such as bulldozers and forklifts imported from countries covered by US trade agreements.

The White House said the reduction is aimed at lowering costs for farmers, manufacturers and agricultural producers at a time when fuel and input costs have risen sharply following the outbreak of the US-Iran war.

The 10% Incentive For US Metals

The proclamation includes an additional tier for equipment makers willing to use domestically sourced materials. Foreign manufacturers can qualify for an even lower 10% tariff rate if the imported equipment contains at least 85% US-sourced steel or aluminium by weight.

The steel must be melted and poured in the United States, while aluminium must be smelted and cast domestically. The provision is designed to channel more orders toward American metals producers as a secondary objective of the policy.

Why The Cut Was Made

Trump cited rising costs to domestic industries as the direct justification in the proclamation. Equipment makers including Deere and Company have pointed to surging fuel and fertiliser costs for sluggish tractor sales since the West Asia conflict drove up energy prices.

Globally, aluminium buyers have also been rattled by the closure of the Strait of Hormuz, which carries roughly 10% of global supply.

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The move also reflects growing political pressure on the administration. Democrats have been using rising farm input costs as a campaign issue targeting Midwest congressional seats in the November midterm elections.

The tariff reduction marks a shift toward targeted, sector-specific relief rather than blanket adjustments, following April moves that lowered duties on some derivative goods deemed substantially made of steel, aluminium or copper.

Sources:

NDTV

Moneycontrol