Escorts Kubota Reviews US Tractor Exports After India-US Trade Deal

Key Highlights:

• Escorts Kubota is reviewing US tractor exports.

• India faces 18% tariff, Japan 15%.

• A small tariff gap may support exports.

• India is named a growth hub under the 2030 plan.

• Europe tractor import duty is already zero.

Escorts Kubota Limited is reviewing its tractor export plans to the United States after the recent India-US interim trade deal. The company believes the new tariff structure could create an opportunity to re-enter the American market.

Company Sees Fresh Opening in the US Market

Bharat Madan, Whole-Time Director and CFO of Escorts Kubota, said the company is currently not exporting tractors to the US. However, changes in tariff rules may open the door for future shipments.

At present, Kubota Corporation exports tractors to the US from Japan. Japan faces a 15% tariff, while India has an 18% tariff on tractor exports to the US. The difference of just 3% is considered manageable if production and logistics costs are controlled properly.

According to Madan, manufacturing tractors in India and exporting them to the US could also support the parent company’s global strategy. If costs remain competitive, India could become a strong alternative export base.

India Positioned as a Growth Hub by 2030

Under its 2030 mid-term business plan, Kubota has identified India as a key growth market. The company plans to strengthen India’s role in research and development, sourcing, and manufacturing.

The strategy also focuses on better cost management and stronger supply chains across global operations. By using India as a production and innovation hub, Kubota aims to improve efficiency and expand its international footprint.

Limited Impact from India-EU Trade Deal

Commenting on the India-EU free trade agreement, Madan said it is unlikely to significantly impact tractor exports. Import duty on tractors in Europe is already zero.

Escorts Kubota is already exporting tractors to Europe, and shipments from India to the EU continue at a steady pace. Since there are no additional tariff benefits under the agreement for tractors, the current export flow is expected to remain stable.

What This Means for the Tractor Industry

The new India-US trade arrangement may provide Escorts Kubota with a competitive opportunity in the US market, especially if cost efficiency is maintained. With India positioned as a long-term growth and production hub, the company could strengthen its global presence in the coming years while continuing its steady exports to Europe.

Also Read: Mahindra Group Appoints Harsh K. Rai as CEO of Farm Division and Gromax

CMV360 Says

Escorts Kubota is closely reviewing tractor exports to the US after the India–US interim trade deal created a possible cost advantage. With only a small tariff gap between India and Japan, the company sees potential to restart shipments if expenses remain competitive. At the same time, India is being developed as a major growth, sourcing, and production hub under Kubota’s 2030 plan, while European exports continue steadily.