HS Code:
This category, typically associated with HS Code 8701.20 (tractors with a net engine power of 119.4 kW or more but less than 194 kW), includes medium to heavy-duty tractors used primarily in agricultural, industrial, and construction settings. These machines are designed for high-power applications, offering robust performance for tasks such as plowing, hauling, and other heavy-duty operations. This category is critical in global trade due to its significance in mechanized agriculture and infrastructure development, particularly in emerging economies.
Total Trade Volume
USD 3.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 850 million
26.6% of total trade
Increasing
USD 620 million
19.4% of total trade
Stable
USD 480 million
15.0% of total trade
Increasing
USD 350 million
10.9% of total trade
Stable
USD 200 million
6.3% of total trade
Increasing
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for sustainable machinery
Increased adoption of tractors with lower emissions and hybrid technologies, driving innovation in the sector.
2021-2023
Growth in agricultural mechanization in developing countries
Significant increase in exports to regions like Sub-Saharan Africa and South Asia, boosting trade volumes.
2020-2022
Supply chain disruptions due to geopolitical tensions
Delays in production and shipping, leading to higher costs and temporary trade volume declines in specific regions.
2022
The European Union introduced stricter Stage V emission standards for non-road mobile machinery, including tractors in this power range, requiring manufacturers to adopt cleaner technologies.
January 2023
Increased production costs for manufacturers but long-term benefits in market access to EU countries.
Negotiations included discussions on reducing tariffs for agricultural machinery, potentially benefiting exporters of tractors in this category.
March 2023
Possible reduction in trade barriers, fostering higher export volumes to China.
India announced subsidies for farmers purchasing high-power tractors, boosting domestic demand and imports in this category.
July 2022
Significant growth in trade volume for exporting countries targeting the Indian market.