Shares of Deere & Company (NYSE:DE) rose 4.3% on Tuesday after the White House said it would lower tariffs on a range of farm and construction equipment beginning June 8.
The administration said late Monday that import duties on items such as harvesters and forklifts would be cut to 15% from the previous 25% level. In addition, foreign-made capital equipment may qualify for a reduced 10% duty rate provided the items contain at least 85% U.S. steel or aluminum, according to a White House fact sheet.
The tariff adjustments will take effect on June 8 and remain in place through the end of 2027. Officials framed the move as intended to encourage investment in the industrial economy.
Under a presidential proclamation issued Monday, the administration specifically designated agricultural equipment and certain heating, ventilation, and air conditioning systems as "derivative products" eligible for the new 15% tariff rate. These products had previously been subject to a 25% duty under the section 232 metal tariffs.
The proclamation also temporarily altered the tariff treatment for mobile industrial equipment and machinery, with the administration saying the modifications reflect those products' roles in productive economic activity while continuing to address national security concerns tied to metal imports.
Separately, the threshold for qualifying imported products as made "entirely" from American aluminum, steel, or copper was lowered to 85% from 95%. Products that meet that threshold can seek the 10% duty rate.
The changes were implemented under section 232 of the Trade Expansion Act of 1962, which grants the president authority to impose duties on imports judged to pose national security risks. The original metal tariffs were established in 2018 and were last modified in April 2026.
The tariff revisions cover several segments of industrial activity, explicitly naming agricultural machinery and HVAC equipment and temporarily adjusting rules for mobile industrial machines. The administration has framed the policy as an industrial investment incentive while maintaining the national security framework that underpins section 232 actions.
Market reaction was immediate for Deere shares, which saw a multi-percent gain following the announcement. The proclamation’s specific content and the period through the end of 2027 define the near-term policy environment for affected manufacturers, suppliers, and buyers.