US Announces Tariff Cut on Some Equipment, Limited Benefits for India: GTRI

• US cut tariffs on selected equipment with steel/aluminium/copper from 25% to 15%; 10% rate for 85% US-origin metal products.

• Indian engineering, HVAC, electrical, and agri machinery exporters may gain modestly; core metal tariffs stay at 50%.

• Covers HVAC, bulldozers, forklifts, harvesters, agri machinery, electrical grid; India imported $2.9 billion from US in FY2026.

The US administration has announced a reduction in tariffs on selected industrial and agricultural equipment containing steel, aluminium or copper from 25% to 15%, think tank GTRI said on Tuesday.

For India, the changes offer limited benefits, it said.

While exporters of engineering goods, HVAC equipment, electrical equipment and agricultural machinery may gain from the reduced 15% tariff, and some manufacturers could potentially qualify for the new 10% rate by using US-origin metals, the overall impact is likely to be modest, the Global Trade Research Initiative Founder Ajay Srivastava said.

The lower rate will apply from June 8, 2026, through December 31, 2027.

Products covered include heating and air-conditioning equipment, bulldozers, forklifts, harvesters, agricultural machinery and certain electrical grid equipment.

A 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 said.

Products containing 15% or less steel, aluminium or copper by weight will continue to remain exempt from Section 232 tariffs.

However, the core metal tariffs remain unchanged. Most imported steel, aluminium and copper articles will continue to face a 50% tariff, while many downstream and derivative products made from these metals will remain subject to a 25% duty, he said.

India imported about $2.9 billion worth of steel, aluminium, copper and related products from the United States in FY2026, 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.

"However, the core issue remains unchanged: Indian exports of steel, aluminium and copper products continue to face the punitive 50% Section 232 tariffs, while many downstream metal products remain subject to a 25% duty," he added.