The US has reduced duties on agriculture and construction equipment to 15% from 25% through a proclamation signed by President Donald Trump. The tweaks are, however, expected to have a limited impact on India as its exports of the items that will attract lower duties is less than $ 50 million a year.
The Proclamation adjusts the tariffs on agricultural equipment, like combines and harvesters, as well as certain other equipment, from 25% to 15%. It also expands the existing category of industrial equipment subject to a 15% tariff to include mobile industrial equipment, like bulldozers and forklifts, when imported from trade deal countries that are entitled to such treatment.
Other products covered by the proclamation include heating and air-conditioning equipment and certain electrical grid equipment.
If foreign companies use at least 85% of American steel and aluminum by weight then they will qualify for a 10% duty rate. These tariff changes will be applicable from June 8 and last till December 31, 2027.
For India, the changes offer limited benefits. While exporters of engineering goods, HVAC equipment, electrical equipment and agricultural machinery may gain from the reduced tariffs, founder of Global Trade Research Initiative Ajay Srivastava said. Some manufacturers could potentially qualify for the new 10% rate by using U.S.-origin metals, the overall impact is likely to be modest.
India imported about $2.9 billion worth of steel, aluminium, copper and related products from the United States in FY2026, creating some opportunity for Indian manufacturers to use US-origin inputs and qualify for the lower tariff when exporting finished products back to the U.S.
However, the core issue remains unchanged: Indian exports of steel, aluminium and copper products continue to face the punitive 50 % Section 232 tariffs, while many downstream metal products remain subject to 25% duties.