ITL shifts tractor exports from US to India

International Tractors Limited (ITL), India's largest tractor exporter, is considering shifting exports to Mexico and Canada from its Atlanta facility. This change comes as the company faces challenges due to US tariffs that have made it harder for partners in those countries to buy tractors from the US. ITL anticipates a decline in exports for the second consecutive year in fiscal 2024-25. This is attributed to uncertainties in key markets such as the European Union, North America, and South Asia, mainly due to ongoing global trade wars and geopolitical issues. Gaurav Saxena, the company’s chief executive for international operations, shared that they previously exported from Atlanta but are now reconsidering this strategy. On March 4, tariffs of 25% were imposed by the US on goods from Mexico and Canada, affecting ITL’s business. US President Donald Trump announced a pause on tariffs related to the US-Mexico-Canada Agreement until April 2, but the uncertainty remains. The US is still a crucial market for ITL, ranking just after the EU. Last year, ITL exported 33,600 tractors and 35,000 the year before, making up about 35% of India's total tractor exports. Rival company Mahindra & Mahindra is also facing difficulties in the US market but is hopeful about a recovery in the tractor industry. Meanwhile, ITL's sales to Ukraine and Russia have sharply decreased, dropping from 1,000 units a year to almost none.