Preferential rate tied to use of American steel and aluminum

Farm equipment tariffs cut from 25% to 15%

Bulldozers, forklifts also eligible for reduced rates

White House calls move a bid to boost US manufacturing investment

President Donald Trump appears on a Fox News program hosted by his daughter-in-law Lara Trump on May 30, local time, where he said Iran would not be allowed to develop or acquire nuclear weapons. [Reuters]
President Donald Trump appears on a Fox News program hosted by his daughter-in-law Lara Trump on May 30, local time, where he said Iran would not be allowed to develop or acquire nuclear weapons. [Reuters]

By Seo Ji-yeon, The Herald Business

President Donald Trump introduced a preferential tariff scheme for imported equipment and machinery that makes heavy use of American steel and aluminum, while also temporarily cutting duties on farm equipment and some industrial machinery to encourage manufacturing and agricultural investment in the United States.

The White House said Trump signed a proclamation Sunday, local time, adjusting the tariff structure on imports of steel, aluminum and copper products.

Under the proclamation, imported equipment or machinery in which American-made steel and aluminum account for at least 85 percent of total weight will qualify for a preferential tariff rate of 10 percent.

The White House said the measure is designed to encourage foreign companies to use more American-produced metals in their manufacturing processes.

The proclamation also includes tariff reductions aimed at boosting investment in US manufacturing and agriculture. Duties on farm equipment — including combines and harvesters — will drop from 25 percent to 15 percent, with some other equipment categories receiving the same benefit.

The scope of industrial equipment eligible for the existing 15 percent tariff rate will also be expanded. Mobile industrial equipment such as bulldozers and forklifts imported from countries that have free trade agreements with the United States will now qualify for the 15 percent rate.

The tariff adjustments are set to remain in effect through Dec. 31, 2027.

"These tariff changes are designed to encourage near-term investment to rebuild America's industrial base," the White House said, adding that the measures would help strengthen US manufacturing competitiveness and stabilize supply chains.

The Trump administration has maintained that its tariff policies on steel, aluminum and copper imports contribute to national security and bolster the competitiveness of American manufacturing.

The White House said the United States rose to become the world's third-largest steel producer last year, and that the policies have had a positive effect on revitalizing steel-producing communities and creating manufacturing jobs.


sjy@heraldcorp.com