By Ryan Hanrahan
The Wall Street Journal’s Gavin Bade reported that “President Trump on Monday moved to reduce tariffs on heating and cooling equipment and certain heavy industrial and agricultural goods, as well as cutting levies on products from abroad made with American metals.”
“In a proclamation, Trump said he would lower tariffs applied to HVAC systems, bulldozers, forklifts and other mobile industrial equipment, and agricultural equipment such as harvesters to 15%. Those tariffs, imposed on steel, aluminum and copper goods, previously stood at 25%,” Bade reported. “Trump also lowered tariffs to 10% on products that are made in another country but consist of at least 85% U.S. steel, aluminum or copper, measured by weight.”
“The move is the latest by the Trump administration to limit the collateral damage of its trade wars, which have raised the prices for many inputs used in manufacturing, as well as equipment for farmers, construction companies and consumers,” Bade reported. “Trump in April overhauled his steel and aluminum tariffs, and previously exempted scores of food and agricultural goods from his other global levies.”
Bloomberg’s Derek Wallbank reported that “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 (White House) fact sheet said.”
“Globally, aluminum buyers have been shaken by the closing of the Strait of Hormuz and the turmoil in the Persian Gulf, which accounts for nearly 10% of global supply. Diesel fuel prices have also sharply risen since the US and Israel launched a war with Iran, while companies like Deere & Co., the maker of iconic green farm machinery, last month faulted soaring fuel and fertilizer costs for sluggish tractor sales,” Wallbank reported.
“Trump cited rising costs as a justification for the move,” Wallbank reported. “‘Among other things, the Secretary 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,’ the president’s proclamation reads.”
Source : illinois.edu