HS Code:
The Machinery category, classified under HS Code 84-85, encompasses a wide range of mechanical and electrical equipment, including industrial machinery, nuclear reactors, boilers, electrical machinery, and sound or television recording equipment. This category is critical to global industrial and technological development, supporting sectors such as manufacturing, energy, and telecommunications. Machinery trade is driven by innovation, industrial demand, and infrastructure projects, with significant variations in production and consumption across developed and developing economies.
Total Trade Volume
USD 2.5 trillion
Data from 2022
Source
United Nations Comtrade Database
USD 650 billion
26% of total trade of total trade
Increasing
USD 300 billion
12% of total trade of total trade
Stable
USD 280 billion
11% of total trade of total trade
Increasing
USD 200 billion
8% of total trade of total trade
Stable
USD 150 billion
6% of total trade of total trade
Increasing
Average Rate
5.2%
Highest Rate
35% (applied by certain developing countries on specific machinery to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU Single Market or USMCA)
Rise of Automation and Robotics
Increased demand for industrial robots and automated machinery, particularly in manufacturing hubs like China and Germany, driving trade growth in this sub-category.
2021-2023
Shift to Renewable Energy Equipment
Growing trade in machinery related to renewable energy, such as wind turbines and solar panel manufacturing equipment, fueled by global sustainability goals.
2020-2023
Digitalization and IoT Integration
Rising exports of smart machinery with IoT capabilities, especially from tech leaders like Japan and South Korea, transforming industrial operations.
2019-2023
Continued trade disputes between the US and China have led to additional tariffs on specific machinery categories, affecting supply chains for electronics and industrial equipment.
Mid-2022
Increased costs for importers and potential shifts in sourcing to other countries like Vietnam and Mexico.
The European Union's Green Deal policies have incentivized imports of machinery for renewable energy projects, with significant growth in trade from Asian manufacturers.
Early 2023
Positive growth in trade volume for specific machinery sub-categories, benefiting exporters in China and South Korea.
The ongoing semiconductor shortage has disrupted the production of high-tech machinery, particularly in the electronics and automation sectors, leading to delays in trade.
Late 2021 - 2023
Reduced export volumes from key players like Japan and South Korea, with ripple effects on global supply chains.