WASHINGTON, D.C. (RFD News) — Agricultural machinery could soon become slightly less expensive after the White House lowered tariff rates. Agricultural groups are largely supportive of the move, including the American Soybean Association (ASA).
ASA President Scott Metzger said lower costs on equipment and replacement parts would be a positive development for soybean farmers and the broader agricultural industry.
“Lowering costs on critical equipment and parts is a positive step for soybean farmers and all of agriculture at a time when producers continue to face significant financial pressure from rising input costs and tight margins.”
Manufacturers can further reduce the tariff rate by using predominantly U.S.-melted steel in their products.
Kip Eideberg with the Association of Equipment Manufacturers said the announcement provides meaningful benefits for equipment manufacturers and the farmers they serve. He also said the organization hopes to see the relief extended beyond 2027.
“The majority of our members do use U.S. steel in their manufacturing operations. There’s a 10% reduction as a stimulus, if you will, for sourcing domestic steel. So those are the two biggest benefits to our industry. Obviously, and I used the word hopefully earlier, we are hopeful that through continued engagement with the trump administration, we can come up with a plan to extend this relief beyond the end of 2027, because I think you’ll see here very shortly the positive impact that this will have on manufacturers, on farmers. And obviously we’d like to see that positive impact continue well beyond the end of 2027.”
Eideberg said the White House announcement is also a sign the administration understands the challenges involved in strengthening domestic manufacturing and supply chains.
“It is a sign and a welcome sign, I should add, that the Trump administration recognizes the complexities of reshoring supply chains and production and the time needed for equipment manufacturers to invest and expand domestic capacity. We share the president’s goal of strengthening manufacturing and bolstering our global competitiveness. Sometimes our views diverge on how to achieve that goal, but we continue to work with the president and his team on policies that will ensure that these Section 232 measures function as intended while also positioning equipment manufacturers for continued growth over the foreseeable future, hopefully.”
The announcement comes as equipment sales remain under pressure.
Association of Equipment Manufacturers data shows total farm tractor sales fell 11 percent from the previous month in April and are down nearly 10 percent from the same period a year ago.
