HS Code:
The category of machinery or engines with a power output of less than 22.38 kW (HS Code: 8407.31 to 8407.34, typically covering small engines) includes internal combustion engines, often used in small vehicles, motorcycles, lawn mowers, and other light machinery. These products are critical in industries such as agriculture, automotive, and small-scale industrial applications. Global trade in this category is driven by demand for affordable and efficient power solutions in developing and developed markets alike.
Total Trade Volume
USD 5.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
15% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Shift towards electric alternatives
Demand for small combustion engines is facing competition from electric motors, especially in developed markets with stricter emission norms.
2021-2022
Rising demand in agricultural sectors
Increased mechanization in developing countries has boosted demand for small engines used in farming equipment.
2020-2022
Supply chain disruptions
Post-COVID supply chain issues and raw material shortages have led to price volatility and delays in production.
2021-2022
The European Union introduced stricter emission standards for small engines, requiring manufacturers to invest in cleaner technologies or face penalties.
January 2023
Increased production costs for manufacturers exporting to the EU, potentially reducing trade volumes from non-compliant regions.
China rolled out tax rebates and incentives for small engine manufacturers to boost exports amid global supply chain recovery.
March 2022
Strengthened China's position as the leading exporter, potentially increasing market share in price-sensitive regions.
The United States adjusted tariffs on small engines from specific countries as part of broader trade negotiations to address trade imbalances.
July 2022
Mixed impact on importers; some countries face higher costs, while others benefit from exemptions.