The easing of the tariff situation is expected to allow CNH to resume its aggressive export schedule within the next few months, offsetting the temporary disruption experienced last year.
10 Feb 2026 | 248 Views | By Shahkar Abidi and Anurag Chaturvedi
For CNH India, the road to U.S. exports has recently felt like driving through thick mud. However, after several months of stalled exports amid regulatory friction, a new trade agreement has provided the much-needed relief to accelerate its international strategy.
The United States has long been the crown jewel ...
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For CNH India, the road to U.S. exports has recently felt like driving through thick mud. However, after several months of stalled exports amid regulatory friction, a new trade agreement has provided the much-needed relief to accelerate its international strategy.
The United States has long been the crown jewel of CNH India’s export portfolio, accounting for roughly 30% of its total overseas business. The Noida-based manufacturer typically ships between 3,000 and 3,500 tractors annually to American soil, focusing on utility and compact models under 120 horsepower (HP) that are staples for smaller farms and landscaping.
The momentum ground to a halt last August. The levying of higher duties on Indian-made machinery created a sudden economic barrier that almost dried up exports overnight. The impact was so severe that CNH India essentially ceased production for the American market for several months.
“After the August tariff, exports to the U.S. were minimal,” says Narinder Mittal, President & Managing Director of CNH India. “We stopped producing anything for the U.S. market in the last three to four months of the year, barring a few new compact tractor models for testing.” This disruption was a significant blow to a region that had just been carved out as CNH’s fifth standalone global hub, reflecting India’s growing importance in the company’s worldwide footprint.
The gloom is now lifting. With a new trade agreement recently announced, the industry anticipates a sharp recovery. The easing of the tariff situation is expected to allow CNH to resume its aggressive export schedule within the next few months, offsetting the temporary disruption experienced last year.
“I see a lot of positivity. This deal has come at exactly the right time when we needed it,” Mittal notes. “The loss will naturally be offset in the coming months as we supply both our existing range and the newly developed compact tractors.”
The recovery isn't just about finished tractors. CNH is doubling down on strategic sourcing, using India as a global factory for components—the internal parts like axles and gearboxes that feed their assembly lines in the U.S. and beyond. The company aims to cross $500 million in component exports from India within the next three to four years.
While the U.S. remains the primary focus, the EU-India trade deal is the second engine of this recovery. CNH follows a nearly identical model for Europe.
As per Mittal, the deals announced with the U.S. and the EU are expected to lower the cost of bringing high-end technology into India. “It will help us get the technology into India, like auto-guidance systems and telematics, making them cheaper for the Indian farmer,” Mittal explains.