The White House has announced a reduction in tariffs on agricultural equipment, lowering duties on products such as combines and harvesters from 25 per cent to 15 per cent in an effort to reduce costs for American farmers and manufacturers.
The decision was outlined in a proclamation issued late Monday and will take effect on June 8. The reduced tariff rates will remain in place through the end of 2027.
Lower duties for equipment using US metals
According to a White House fact sheet, foreign manufacturers may qualify for an even lower 10 per cent tariff rate if the machinery contains at least 85 per cent US-made steel or aluminum.
Also Read | Iowa shooting horror: Family dispute leaves at least seven dead
The move marks the latest adjustment by President Donald Trumpās administration as it continues refining its broader metals tariff policy amid concerns over rising costs and pressure from businesses.
Trumpās proclamation said the administration had been informed that current economic conditions were affecting industries dependent on agricultural and industrial machinery.
"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.
Rising costs hit farm sector
The tariff changes come as American farmers and machinery manufacturers face mounting cost pressures linked to global supply disruptions and geopolitical tensions.
Aluminum markets have experienced uncertainty following the closure of the Strait of Hormuz and instability in the Persian Gulf region, which accounts for nearly 10 per cent of global aluminum supply.
Also Read | 'You'd be in prison if...': Trump-Netanyahu phone call turns explosive over Lebanon strikes
At the same time, diesel fuel prices have risen sharply after the United States and Israel launched military operations against Iran. Rising fertiliser and fuel costs have also weighed heavily on the agriculture sector.
Last month, Deere & Co., known for its green farm equipment, pointed to higher input costs as one reason for slowing tractor sales.
Market and political reaction
Following the announcement, shares of Japanese machinery maker Kubota Corp. climbed as much as 7.9 per cent in Tokyo trading, per a report by NDTV.
The administration had previously lowered tariffs in April to 25% on some imported goods considered to be āsubstantially madeā of steel, aluminum or copper, while keeping higher 50 per cent duties on many other products.
Democrats have repeatedly argued that Trumpās trade policies have increased financial pressure on farmers, particularly in key Midwest states ahead of Novemberās midterm elections.
