US President Donald Trump announced on Tuesday a 10-percentage-point reduction in tariffs on a range of agricultural and industrial equipment, lowering duties from 25% to 15% until next year-end.
Under the changes, tariffs on agricultural machinery such as combines, harvesters and other farm equipment will fall to 15% from the current 25%. The Republican administration said the reduction is intended to ease costs for producers while supporting investment in America's agricultural sector.
The proclamation also broadens the scope of industrial equipment eligible for the lower 15% tariff rate.
Mobile industrial machinery, including bulldozers, forklifts and similar equipment imported from countries covered by US trade agreements, will now qualify for the reduced duty treatment.
In a further incentive designed to strengthen domestic metals production, foreign manufacturers will be able to access an even lower 10% tariff rate if their imported capital equipment contains at least 85% US-sourced steel or aluminum by weight. To qualify, the steel must be melted and poured in the United States, while aluminum must be smelted and cast domestically.
The White House added that the temporary measures, in effect until December, 2027, are intended to accelerate near-term investments and help rebuild America's industrial base.
The move comes through a new presidential proclamation that modifies existing metals-related trade measures, which the White House says are aimed at addressing national security concerns while boosting key sectors including agriculture, housing and manufacturing.
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