US farmers get tariff relief as Trump blames Iran war for rising costs

The White House has announced a temporary reduction in tariffs on agricultural equipment, cutting duties from 25 per cent to 15 per cent to help US farmers and manufacturers cope with rising costs.


Under a proclamation issued by President Donald Trump on Monday, foreign-made combines, harvesters, and other agricultural equipment will face the lower tariff rate starting June 8 through the end of 2027.






Foreign companies can qualify for an even lower 10 per cent duty rate if their capital equipment contains at least 85 per cent US steel or aluminium by weight, according to a White House fact sheet.


The tariff reduction also expands the existing 15 per cent rate to include mobile industrial equipment such as bulldozers and forklifts when imported from trade deal countries.


Trump cited rising costs as a justification for the move. The proclamation stated that "recent circumstances have affected and are affecting domestic industries" that use agricultural equipment, industrial equipment and machinery.


The global aluminium market has been shaken by the closure of the Strait of Hormuz and turmoil in the Persian Gulf, which accounts for nearly 10 per cent of global supply. Diesel fuel prices have also risen sharply since the US and Israel launched a war with Iran, Bloomberg reported.


Companies such as Deere & Co., the maker of iconic green farm machinery, last month blamed soaring fuel and fertiliser costs for sluggish tractor sales.
Shares of Kubota Corp., the Japanese industrial machinery manufacturer, rose as much as 7.9 per cent in Tokyo following the announcement.


The White House said the temporary tariff changes are intended to spur near-term investments that will rebuild the nation's industrial base.


"These tariffs ensure domestic producers and workers can compete on a level playing field with foreign producers," the fact sheet said.


Democrats have frequently cited rising costs to farmers as a result of Trump's trade policies as an issue that could help flip key House and Senate seats in the Midwest in November's midterm elections.
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