US Slashes Duties on Farm, Construction Equipment to 15%

Washington will cut tariffs on farm and construction machinery including harvesters and forklifts to 15% from 25% starting June 8, 2026, the White House announced, aiming to spur near-term investment in the industrial economy. Equipment made with at least 85% U.S. steel or aluminum qualifies for a further reduced 10% rate. The temporary relief runs through the end of 2027. President Trump invoked Section 232 authority, citing rising costs that have harmed domestic users of agricultural and industrial equipment. The action follows an April reduction to 25% on some derivative goods substantially made of steel or aluminum, while a 50% duty remains on many other metal-intensive imports. Shares of Japanese machinery maker Kubota Corp. surged as much as 7.9% in Tokyo. Meanwhile, manufacturers like Deere & Co. have flagged sluggish tractor sales due to soaring fuel and fertilizer expenses.