US Cuts Agricultural Equipment Tariffs From 25% To 15% Amid Rising Farm Costs

The White House said it will reduce tariffs on agricultural equipment, such as combines and harvesters, in order to reduce costs for US farmers and manufacturers.

Under a proclamation issued late Monday, those tariffs would drop to 15% from 25%. Foreign companies could qualify for a lower 10% duty rate if capital equipment contains at least 85% US steel or aluminum, according to a White House fact sheet. 

The concession takes effect June 8 and would run through the end of 2027. 

Trump's directive on Monday was his latest effort to streamline his metals duties, as the White House grapples with high costs as well as complaints from business that said its tariff regime was too onerous to comply with. In April, the administration lowered tariffs to 25% on some imported derivative goods deemed to be "substantially made" of steel, aluminum or copper while maintaining a higher 50% rate on many other imports containing the metals.

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.

Shares of Kubota Corp., the Japanese industrial machinery manufacturer, rose as much as 7.9% in Tokyo after the announcement.

Trump cited rising costs as a justification for the move. 

"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.

Democrats have frequently cited rising costs to farmers as a result of Trump's trade policies as an issue that could help flip key House and Senate seats in the Midwest in November's midterm elections. 

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)