US President Trump has announced a tariff decrease for European agricultural machinery manufacturers; the tariff will decrease from 25% to 15% until the end of 2027. The US is also reducing its special tariffs on steel and aluminum products, including agricultural machinery, from 25% to 15%. Manufacturers that source 85% of steel domestically qualify for a 10% rate.
“Especially at a time when our nation’s farmers are under increasing pressure, this action represents an important step toward lowering input costs, strengthening supply chains and supporting American farmers and manufacturers,” said Kip Eideberg with the Association of Equipment Manufacturers.
“This proclamation is an encouraging sign that the Trump administration recognizes both the complexity of reshoring production and the need to provide manufacturers with the runway to expand domestic capacity,” said Eideberg, who is senior vice president of government and industry relations at AEM.
With many farmers still deferring equipment purchases, the ag equipment industry remains sluggish. AEM documented a 21% drop in U.S. tractor sales in May compared to the same month in 2025, with combine sales down 56%.
