HS Code:
The 'Exceeding 7,460 kW' category typically refers to high-capacity machinery or equipment, often associated with power generation or heavy industrial use, such as large diesel engines or gas turbines under HS Code 8408 or 8411. These products are critical for industries like energy, shipping, and large-scale manufacturing, where high power output is essential. Trade in this category is driven by demand for industrial infrastructure development, energy projects, and modernization of heavy machinery across both developed and emerging economies.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Shift towards renewable energy integration
Increased demand for hybrid systems combining high-capacity machinery with renewable energy solutions, affecting traditional diesel engine markets.
2021-2022
Rising demand in developing economies
Countries in Africa and Southeast Asia are driving demand for high-capacity equipment due to rapid industrialization and infrastructure projects.
2020-2022
Technological advancements in efficiency
Manufacturers are focusing on fuel-efficient and low-emission technologies to meet global environmental standards, increasing production costs but also market competitiveness.
2019-2022
The European Union has introduced stricter emission regulations under the Green Deal, affecting the import and production of high-capacity machinery exceeding 7,460 kW.
January 2023
Manufacturers are compelled to invest in cleaner technologies, potentially increasing costs but also opening markets for innovative products.
A new phase of the US-China trade agreement has reduced tariffs on industrial machinery, including high-capacity equipment, to promote bilateral trade.
March 2023
This is expected to boost exports from China to the US, potentially affecting domestic manufacturers in the short term.
Several multinational corporations have pledged investments in African energy and industrial projects, increasing the demand for high-capacity machinery.
June 2023
This has led to a surge in exports to African nations, with countries like Germany and Japan benefiting significantly.