Trump Cuts Metal Tariffs on Farm Equipment to 15%, June 02

By Huzaifa Zahoor

June 3, 2026

07:51 AM

3 min read

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Key Points

Agricultural equipment tariffs cut from 25% to 15% starting June 8, 2026.

Equipment with 85% U.S. metal content qualifies for 10% rate starting January 1, 2028.

All changes remain in effect through December 31, 2027.

Caterpillar expects $2.2 billion to $2.4 billion in tariff costs for 2026.

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President Trump signed a proclamation on June 1 that adjusts Section 232 tariffs on steel, aluminum, and copper imports. Starting June 8, tariffs on agricultural equipment like combines and harvesters drop from 25% to 15%. Residential HVAC systems and mobile industrial equipment also qualify for the lower rate. The changes aim to ease cost pressures on farmers and manufacturers through December 31, 2027.

What Changed in the Tariff Adjustment

Trump lowered tariffs on agricultural equipment including combines and harvesters to 15% from 25%. Residential HVAC systems and components now face the same 15% rate. Mobile industrial equipment such as bulldozers and forklifts imported from trade deal countries also qualify for 15% tariffs. The proclamation takes effect June 8, 2026.

New Incentives for U.S. Metal Content

Foreign companies can now qualify for a 10% tariff if their equipment includes at least 85% U.S. melted and poured or smelted and cast steel or aluminum by weight. This threshold changes from the current 95% requirement, effective January 1, 2028. Trump added aluminum lithographic plates and steel racks to the list of derivative products subject to 25% duties.

Why Farmers and Equipment Makers Pushed for Relief

Major manufacturers reported heavy tariff costs in recent earnings. John Deere cited approximately $1.2 billion in direct tariff exposure. Caterpillar expects full-year 2026 tariff costs between $2.2 billion and $2.4 billion. AGCO noted that higher tariff costs on inputs offset income gains. Trump cited rising costs as justification for the tariff cuts.

How Long the Relief Lasts

All tariff adjustments remain in effect through December 31, 2027. Trump stated the temporary modifications will spur near-term investments to rebuild the U.S. industrial base. The proclamation lowers tariffs on derivative products while maintaining higher rates on pure metals. Russia continues to face 200% tariffs on aluminum articles and derivatives.

Final Thoughts

Trump’s tariff cuts provide temporary relief to farmers and equipment makers facing rising input costs through 2027. The 10% rate for equipment with 85% U.S. metal content incentivizes domestic sourcing but falls short of the 1.4% average tariff rate on agricultural equipment in 2024.

FAQs

When do the new tariff rates take effect?

The tariff changes take effect June 8, 2026, and remain in place through December 31, 2027.

Which equipment qualifies for the 15% tariff rate?

Agricultural equipment like combines and harvesters, residential HVAC systems, and mobile industrial equipment such as bulldozers and forklifts qualify for the 15% rate.

How can foreign companies get a 10% tariff rate?

Equipment must contain at least 85% U.S. melted and poured or smelted and cast steel or aluminum by weight, effective January 1, 2028.

Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

About Author

Huzaifa Zahoor

Co Founder

Huzaifa Zahoor is the engineer who built Meyka. He has spent years writing Python, training AI models, and building data pipelines specifically for financial markets. His technical articles have reached over 30,000 readers on Medium, so he knows how to make complex things easy to follow. If this article touches on how the tools work, he is the person who actually built them.