HS Code:
The Mechanical category, primarily covered under HS Code Section XVI (Chapters 84 and 85), includes machinery, mechanical appliances, electrical equipment, and parts thereof. This category encompasses a wide range of products such as industrial machinery, engines, pumps, electrical motors, and consumer electronics. It is a critical sector in global trade due to its role in industrial production, infrastructure development, and technological advancement. The category is highly diverse, ranging from heavy machinery used in construction and manufacturing to precision instruments and household appliances.
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 320 billion
13% 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
25% (imposed by certain countries on specific high-tech machinery)
Lowest Rate
0% (under free trade agreements like EU Single Market or USMCA)
Automation and Robotics Growth
Increased demand for industrial robots and automated machinery in manufacturing sectors, driving trade volumes in countries with advanced tech industries like Japan and Germany.
2021-2023
Shift to Renewable Energy Equipment
Rising trade in mechanical components for wind turbines and solar energy systems, particularly in Europe and China, as countries transition to sustainable energy sources.
2020-2023
Supply Chain Regionalization
Post-COVID-19, companies are relocating supply chains closer to consumer markets, affecting trade patterns with increased intra-regional trade in North America and Europe.
2021-2023
The United States imposed additional tariffs on Chinese mechanical and electrical equipment as part of ongoing trade disputes, targeting high-tech sectors.
Mid-2022
Increased costs for US importers and a potential shift of supply chains to other Asian countries like Vietnam and Taiwan.
The European Union introduced stricter environmental standards for imported machinery, focusing on energy efficiency and emissions.
Early 2023
Non-compliant exporters face market access barriers, while EU-based manufacturers gain a competitive edge.
A persistent shortage of semiconductors has disrupted the production and trade of mechanical and electrical equipment reliant on chips, such as industrial control systems.
2021-2023
Delays in production and increased costs for manufacturers worldwide, particularly affecting automotive and electronics sectors.