The White House announced it will reduce tariffs on imported farm and construction equipment such as harvesters and forklifts, an effort to boost the industrial economy and provide relief for American farmers.
Under a proclamation issued late Monday, those duties would drop to 15% from 25%. Foreign companies could qualify for a lower 10% levy rate if capital equipment contains at least 85% US steel or aluminum, according to a White House fact sheet. President Donald Trump cited rising costs as a justification for the move.
The changes take effect June 8 and would run through the end of 2027. The temporary relief will “spur near-term investments that will rebuild the Nation’s industrial base,” the fact sheet said.
The directive comes as Trump has been courting US farmers, who have been wrestling with soaring fuel and fertilizer prices, and comparatively smaller gains in crop prices. The low-margin environment has intensified with the war in Iran, further delaying purchases of larger farming equipment.
A monthly report from Purdue University and CME Group on Tuesday showed grower sentiment dropped in May, with an index of farm capital investment falling to the lowest level since September 2024.
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