The Association of Equipment Manufacturers has warned that persistent duties on specialized parts unavailable from domestic suppliers could further inflate production costs, ultimately raising prices for farmers and consumers. The group says the impact is especially acute in rural regions where agriculture is the main economic driver.
Senate Republicans Push for Targeted Relief
Sen. Chuck Grassley of Iowa has asked the White House, the U.S. Trade Representative, and the Departments of Commerce and Agriculture to lift duties on selected farm-machinery components. Grassley’s office said the goal is to reduce manufacturing costs and to prevent additional layoffs in the equipment sector.
North Dakota Sen. John Hoeven raised the issue during a Monday White House roundtable where Trump outlined the farm-aid plan. According to Hoeven, the president indicated that he would explore ways to make equipment more affordable, including the possibility of easing certain regulatory requirements in exchange for lower machinery prices.
At the same meeting, Trump signaled a willingness to roll back environmental rules that he believes increase production costs, telling executives that he expects manufacturers to pass any savings on to farmers. Lawmakers, however, emphasize that relieving regulatory or tariff burdens on equipment producers is only part of the solution; restoring farm income is equally important.
Farm Finances Remain Tight
Producers are contending with their third consecutive year of losses on many row crops, according to Senate Agriculture Committee Chair John Boozman of Arkansas. Low commodity prices, higher fertilizer expenses and reduced export opportunities have forced many farms to delay capital purchases. Former House Agriculture Committee Chair Frank Lucas of Oklahoma noted that when equipment dealers, input suppliers and banks begin to report stress simultaneously, the overall farm economy is under significant strain.
The $12 billion bridge program designates roughly $11 billion for growers of corn, soybeans and other row crops, a sector heavily exposed to Chinese and other foreign tariffs. Farmers are already receiving about $30 billion in separate federal subsidies, and additional funds are scheduled to arrive next October under provisions of the Republican reconciliation measure known as the One Big Beautiful Bill Act.
Even with those allocations, industry groups argue that more assistance will be necessary. American Farm Bureau Federation President Zippy Duvall has described the current package as only a down payment, and lawmakers from both chambers have indicated they are prepared to approve further funding if conditions worsen.
Trade Negotiations Continue
The administration is engaged in multiple trade talks aimed at reducing barriers for U.S. farm products, and some duties have been rolled back. Yet until comprehensive agreements are reached and export volumes rebound, congressional Republicans say Washington must cushion the sector against lost sales.
To date, the discussion has centered on two parallel tracks: direct payments that raise farm income and targeted tariff exemptions that lower machinery costs. Supporters argue that addressing both sides of the ledger is essential for reviving equipment demand and preventing further job cuts in the manufacturing heartland.
Data from the U.S. Department of Agriculture show that net farm income is projected to remain below its 10-year average, underscoring the financial squeeze that has prompted the current round of appeals to the president.
While Trump has not detailed additional measures beyond the existing aid package, he has signaled openness to both regulatory relief and selective tariff adjustments. Republican lawmakers say they will continue pressing for decisive action in the coming weeks, arguing that timely intervention is critical to keeping farmers solvent and protecting manufacturing jobs linked to agriculture.
Crédito da imagem: Michael Nagle | Bloomberg | Getty Images
