What's the Tariff on Industrial Machinery?
Precision machinery from Germany, Japan, China.
Current Tariff Rate
10%
Pre-2025 Rate
0%
Rate Increase
+10pp
Price Impact
+10%
+$8,500
Real-World Price Impact
Before Tariffs
$85,000
CNC machine
After Tariffs
$93,500
CNC machine
That's $8,500 more per unit — a 10% price increase paid by the American buyer.
Note: Price estimates assume full tariff pass-through to consumers. Actual retail prices may vary — manufacturers may absorb some costs, shift production, or adjust margins.
The Story Behind This Tariff
Industrial machinery tariffs affect the capital equipment that American manufacturers need to compete globally — creating a paradox where tariffs meant to boost US manufacturing actually raise the cost of manufacturing itself. Germany and Japan dominate precision machinery: DMG Mori, Trumpf, Mazak, and Fanuc produce CNC machines, laser cutters, and robotic systems that US factories depend on. The 10% Section 122 baseline tariff is relatively modest but significant on $85,000+ machines where 10% means $8,500. More critically, specialized machinery often has no domestic equivalent — a specific German 5-axis CNC or Japanese wire EDM machine may be the only option for a given application. The tariff perversely weakens US manufacturers' ability to invest in automation and productivity, potentially slowing the reshoring that other tariffs aim to encourage. China's growing industrial machinery sector faces much higher combined rates.
📦 Supply Chain
Primary Origin
DE
Made in USA
35%
Import Volume
$42.8B
Alternatives
Japan, domestic (Haas Automation), South Korea
📅 Tariff Timeline
2018
Section 301 — Chinese machinery at 25%
25% (China)2020
Some machinery exclusions granted for unique equipment
Varies2025
Section 122 baseline applies to all origins
10%👥 Consumer Impact
Households Affected
N/A
Annual Cost Per Household
N/A (B2B)
💡 Did You Know?
- •Germany's 'Mittelstand' companies produce 70% of the world's specialized manufacturing machinery — often with no substitute
- •Haas Automation in Oxnard, CA is the largest US CNC machine maker, but German and Japanese machines dominate high-precision work
- •A tariff on machinery raises costs for every product made with that machinery — it's a tax on productivity itself
Tariff Details
- HTS Code
- 8428.33
- Current Rate
- 10%
- Pre-2025 Rate
- 0%
- Tariff Type
- Section 122
Legal Authority
Section 122 (Balance of Payments)
Effective: April 2025
Baseline 10% tariff on imports to address balance of payments
The tariff on Industrial Machinery is paid by the American importer at the port of entry and passed through to consumers as higher retail prices. The foreign manufacturer does not pay the tariff.
Who Actually Pays This Tariff?
Despite claims that tariffs are paid by foreign countries, the 10% tariff on Industrial Machinery is paid by American importers — US companies that purchase these goods from abroad. The cost is then passed to American consumers through higher retail prices.
- ✓ The foreign seller receives the same price as before
- ✓ The US importer pays 10% of the customs value to CBP
- ✓ The retailer marks up the higher landed cost
- ✓ You pay more at the register: $85,000 → $93,500
Related Products in Industrial
Steel (Hot-Rolled)
25%
1 ton HR coil: $750 → $938
Aluminum (Unwrought)
25%
1 ton aluminum: $2,400 → $3,000
Semiconductors
50%
Chip batch (1000 units): $5,000 → $7,500
Copper Wire
25%
1000 ft copper wire: $350 → $438
Lithium-Ion Batteries
54%
EV battery pack: $8,000 → $12,320
Solar Panels
54%
10 kW system: $15,000 → $23,100
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