VST Tillers Tractors stops U.S. exports on high tariffs

VST Tillers Tractors (VST), part of the VST Group set up in 1911 by V.S. Thiruvengadaswamy Mudaliar, on Friday said it has suspended exports to the U.S markets following the imposition of 50% increase in tariffs by the Donald Trump administration.

Antony Cherukara, CEO, VST Tillers Tractors told The Hindu that, “We have stopped our exports of drivetrains to the U.S market as it is not feasible under a 50% tariff regime. High tariffs have made exports to the country quite unviable for Indian manufacturers.’’

VST, in 2022, had entered into a master supply agreement with California-based Monarch Tractor to supply integrated gear train and drivetrain systems along with front and rear axle assemblies for Monarch’s electric, autonomous/ driverless tractor, claimed to be the world’s first. The drivetrain system includes the clutch, transmission, and driveshaft, which transmit power from the engine to the wheels through axles. However, the new tariff structure rendered the partnership commercially unviable for VST.

Meanwhile, Mr. Trump’s new immigration policies spread fear and uncertainty amongst Mexican farm workers who were deployed on Californian grape farms. This led to huge farm labour shortage and consequently thousands of hectares of vineyards remained unharvested. This, in turn, increased the demand for autonomous, electric, sleek-body and data-driven tractors capable of performing multiple tasks without human intervention, on farms.

These tractors don’t require drivers, they move on their own between rows of grapevines and are capable of doing multiple tasks. For instance, they are equipped to detect fungal infections on leaves, and automatically deploy drones to spray fungicide on affected leaves.

Despite the suspension of exports to the U.S, Mr. Cherukara remained optimistic about resuming exports once tarifs structure got better. “We have registered for exports to the U.S., however, we put the plunge on hold until tariffs get rationalised,’’ he added. The company currently exports tractors, power tillers and power weeders to over 40 countries.