US President Donald Trump has announced a temporary reduction in tariffs on a range of agricultural and industrial equipment, lowering duties from 25% to 15% as part of a broader effort to encourage investment and support key sectors of the American economy.
The move, announced through a new presidential proclamation, will remain in effect until December 2027 and is aimed at reducing costs for businesses while strengthening domestic manufacturing and agricultural production.
The tariff cut applies to several types of agricultural machinery, including combines, harvesters and other farm equipment. The White House said the lower duty rate is intended to help farmers and agricultural producers invest in new equipment at a lower cost.
The administration has also widened the list of industrial equipment eligible for the reduced tariff rate.
Mobile industrial machinery such as bulldozers, forklifts and similar equipment imported from countries covered by US trade agreements will now qualify for the 15% tariff, down from the previous 25%.
The announcement comes as the Trump administration continues to use tariffs as a key part of its trade and industrial policy.
According to the White House, the temporary reduction is designed to support sectors such as agriculture, housing and manufacturing while also encouraging companies to invest in equipment and production capacity.
The administration has also introduced an additional incentive aimed at boosting demand for domestically produced steel and aluminium.
Under the new rules, foreign manufacturers will be eligible for an even lower tariff rate of 10% if the imported equipment contains at least 85% US-sourced steel or aluminium by weight.
To qualify for this benefit, the steel used in the equipment must be melted and poured in the United States, while aluminium must be smelted and cast domestically.
The White House said the measures are intended to encourage companies to increase the use of American-made metals and strengthen domestic supply chains.
Officials also said the policy is part of a broader strategy to rebuild America’s industrial base and encourage near-term investment in sectors considered important to economic and national security.
In a statement, the White House defended the administration’s tariff strategy, saying tariffs on imported steel, aluminium and copper have been used to protect critical industries from low-priced foreign imports.
“President Trump has utilized tariffs on imported aluminum, steel, and copper to protect the national security of the United States, the economic resilience of vital industries, and the financial position of American families, communities, and businesses from the threat of low-priced foreign imports,” the White House said.
The latest announcement marks a shift from blanket tariff increases towards more targeted incentives aimed at encouraging investment while maintaining support for domestic industries.
For manufacturers and agricultural producers, the lower tariff rates could help reduce equipment costs over the next several years. At the same time, the administration hopes the additional incentives tied to American steel and aluminium will channel more investment into domestic metals production.
The temporary nature of the tariff reductions also suggests that Washington wants businesses to accelerate investment decisions before the measures expire at the end of 2027.
The policy is likely to be closely watched by manufacturers, farmers and global equipment makers as they assess how the changes could affect costs, sourcing decisions and future investment plans.