Caterpillar and other equipment manufacturers saw share prices rise following a White House announcement on tariff reductions. The administration is lowering import duties on agricultural and industrial machinery to 15%. This replaces the previous 25% rate for equipment such as combines and bulldozers.
The new rates take effect June 8. These reductions will remain in place through the end of 2027. Officials intend the move to lower costs for farmers and manufacturers while encouraging industrial sector investment.
The policy offers a further reduced 10% tariff for specific equipment. This rate applies to machinery containing at least 85% U.S.-sourced steel or aluminum. The provision aims to increase domestic metals production as customers face elevated input costs.