Trump Cuts Tariffs on Farm and HVAC Equipment, Expands Industrial Gear Carve-Outs
According to an Associated Press report via Daily Commercial News, President Trump signed an executive order on June 2 adjusting tariffs on steel, aluminum, and copper imports, lowering rates on select equipment categories and creating new incentives for countries that use American-sourced metals.
What Changed and What It Costs Now
The order reduces tariffs on agricultural equipment, including combines and harvesters, and HVAC systems to 15% from 25%. Mobile industrial equipment such as bulldozers and forklifts, when imported from countries that have a trade deal with the U.S., is now included in the existing 15% industrial equipment tariff category.
A separate provision allows countries where manufacturers use at least 85% U.S.-melted or U.S.-cast steel or aluminum, by weight, to qualify for a reduced 10% duty rate. The changes took effect immediately and are set to expire at the end of 2027.
These adjustments follow a string of tariff moves. In June 2025, Trump raised tariffs on most steel and aluminum imports to 50% from 25%. In April 2026, he set a flat 50% rate on goods made entirely or nearly entirely of aluminum, steel, or copper, and a 25% rate on derivative products made “substantially” of those metals.
Not everyone views the moves as economic relief. Barry Appleton, a law professor and co-director of New York Law School’s Center for International Law, said the changes appear politically motivated. “Farm bankruptcies are soaring, farm sentiment is declining, and Republican senators are openly warning their party is heading toward midterm losses in key agricultural states,” he said, calling the proclamation “the White House’s response: throw the farm belt a bone before voters go to the polls.”
What It Means for Subcontractors
- HVAC subcontractors sourcing equipment for new construction or retrofits may see some cost relief at the 15% rate, but the window closes at end of 2027, so lock in pricing now while the lower rate holds.
- Heavy equipment contractors using bulldozers, forklifts, or similar mobile industrial gear imported from U.S. trade-deal partners should verify equipment origin with suppliers, as the 15% rate only applies in those cases.
- Material-heavy subcontractors working with steel coils, aluminum sheet, or copper products are still facing a 50% tariff on those raw goods. The carve-outs apply to equipment, not raw materials or structural metal.
- Bids covering multi-year projects should account for tariff expiration at end of 2027. If equipment procurement extends past that date, current rates may not apply.
- Sourcing from countries that use 85% or more U.S.-origin metals could unlock the 10% duty tier. Ask your supply chain partners whether they qualify.
