Washington, June 3: According to the White House, President Donald Trump has signed a new order that reduces tariffs on various agricultural and industrial equipment. The order also strengthens incentives for manufacturers using American-made steel, aluminum, and copper.
This change affects the existing Section 232 tariffs, which the government deems essential for national security and strengthening the domestic metal industry.
Under the new order, the 25% tariff on agricultural equipment, such as harvesters and combine machines, has been reduced to 15%. This relief will remain in effect until December 31, 2027. The government aims to support sectors heavily reliant on these machines while also boosting investment in American manufacturing.
Additionally, several other industrial products have been included in the reduced 15% tariff rate. Mobile industrial equipment like bulldozers and forklifts will now incur lower fees if they come from countries with which the U.S. has trade agreements.
The White House stated that this step is taken to better address national security threats and increase investment in the U.S. agriculture, housing, and manufacturing sectors.
Trump has also modified the rules regarding the percentage of American steel, aluminum, or copper required for tax exemptions. Previously set at 95%, this threshold has been lowered to 85%. This means that companies can benefit even with slightly less American metal used.
Moreover, new products such as aluminum lithographic plates and steel racks have been added to the list of items subject to tariffs. The government asserts that this will prevent companies from circumventing regulations and will maintain the integrity of the existing tariff system.
The White House emphasized that these changes are made to support American industries and protect strategic sectors. The government also noted that farmers need machinery for agriculture, the construction sector is vital for national development, and material handling machines are crucial for factories.
The government reported that steel production in the U.S. is increasing, making it the third-largest steel producer in the world by 2025. In the next two years, new steel-making capacity is expected to grow, with several new factories and investments occurring in states like West Virginia, Arkansas, and South Carolina.
Investments in the aluminum and copper sectors are also on the rise. For instance, Century Aluminum and Emirates Global Aluminum are collaborating to build a new aluminum plant in Oklahoma. Additionally, companies like Highland Copper, Ivanhoe Electric, Rio Tinto, and Wieland are expanding their projects.
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