Trump cuts tariffs on farm, industrial equipment to 15% till 2027
Synopsis
Key Takeaways
US President Donald Trump has signed a proclamation easing tariffs on a range of agricultural and industrial equipment while tightening incentives for manufacturers to use American-made steel, aluminium and copper, the White House said. The order, signed on 1 June, recalibrates existing Section 232 duties that Washington maintains are essential to national security and domestic metal industries.
Key tariff changes
Under the proclamation, tariffs on agricultural machinery such as combines and harvesters, along with select related equipment, will be cut from 25 per cent to 15 per cent through 31 December 2027. The administration described the temporary relief as a bridge for sectors dependent on heavy machinery while domestic manufacturing scales up.
The measure also widens the list of industrial products eligible for the lower 15 per cent rate. Mobile industrial equipment, including bulldozers and forklifts, sourced from countries covered by US trade agreements, will now qualify for the reduced duty.
New metal-content threshold
Trump has lowered the bar for imported goods to receive preferential treatment based on US metal content. Products will now qualify if at least 85 per cent of their steel, aluminium or copper content by weight is produced in the United States, down from 95 per cent earlier. The White House said the revised threshold is designed to push downstream manufacturers toward greater use of domestically produced metals.
The proclamation additionally folds aluminium lithographic plates and steel racks into the list of derivative products subject to tariffs. Officials argued this would close loopholes used to circumvent existing rules under Section 232 of the Trade Expansion Act.
What the White House said
In an accompanying fact sheet, the administration said the order was aimed at addressing 'national security threats, spur investment in American agriculture, housing, and manufacturing, and facilitate US production of related products.' It framed the dual move — relief on equipment, tighter rules on metals — as consistent with protecting strategic sectors while easing input costs for farmers and builders.
Domestic metal industry signals
The White House pointed to what it described as a resurgence in domestic metal production. It said the United States became the world's third-largest steel producer in 2025, with more than four million tonnes of new crude steelmaking capacity expected to come online over the next two years. New facilities have been announced in West Virginia, Arkansas and South Carolina.
The administration cited a joint venture between Century Aluminum and Emirates Global Aluminum to build a new aluminium smelter in Oklahoma, alongside expansion projects involving Highland Copper, Ivanhoe Electric, Rio Tinto and Wieland, as evidence that tariff policy is drawing fresh capital into US metals.
What happens next
The reduced equipment duties will run until end-2027, giving Washington a window to assess whether the metal-content tweak meaningfully shifts sourcing patterns. Trade partners are likely to scrutinise the country-of-agreement eligibility list closely, given the implications for exporters of heavy machinery.