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India may get limited benefits from US tariffs reduction on industrial, agricultural equipment: GTRI
Jun-03-2026

Think tank Global Trade Research Initiative (GTRI) has said that India may get limited benefits from US tariffs reduction on selected industrial and agricultural equipment containing steel, aluminium or copper from 25% to 15%. It noted that exporters of engineering goods, HVAC equipment, electrical equipment and agricultural machinery may gain from the reduced 15% tariff, while some manufacturers could potentially qualify for the new 10% by using US-origin metals. The lower rate will apply from June 8, 2026, through December 31, 2027.

The products covered under this tariff reduction include heating and air-conditioning equipment, bulldozers, forklifts, harvesters, agricultural machinery and certain electrical grid equipment. GTRI said that the new 10% tariff category has been introduced for imported products manufactured using at least 85% U.S.-origin steel, aluminium or copper by weight. It added that, India imported about $2.9 billion worth of steel, aluminium, copper and related products from the United States, creating some opportunity for Indian manufacturers to use U.S.-origin inputs and qualify for the lower tariff when exporting finished products back to the US.

Further, the products containing 15% or less steel, aluminium or copper by weight will continue to remain exempt from Section 232 tariffs. However, GTRI pointed that the core metal tariffs remain unchanged with most imported steel, aluminium and copper articles continuing to face 50% tariff, while many downstream and derivative products made from these metals will remain subject to a 25% duty.

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