Updated April 11, 2025
Land Pride Issues Communication to Dealers on Tariff Plans
Land Pride communicated with dealers on April 10 regarding tariffs and the impact to both the manufacturers business and its dealers. At this time Land Pride is not taking any “drastic” action and will announce its plan once there is a clearer picture on the impact to the OEM and its dealers.
Rural Lifestyle Dealer obtained the letter sent by Mark Decker, Land Pride division president, in which it was noted that the tariffs that remain after President Trump suspended a number of the announced tariffs “focus on countries that directly impact Land Pride’s manufacturing operations.”
To read more on the memo sent to dealers, see Rural Lifestyle Dealer's coverage here.
Updated April 10, 2025
AED Responds to President Trump’s Tariff Pause Announcement
Associated Equipment Distributors (AED) President & CEO Brian P. McGuire issued the following statement on April 9 following President Donald Trump’s announcement of a 90-day pause on the implementation of country-by-country reciprocal tariffs and the imposition of a 10 percent import duty — excluding China, which will be subject to a 125 percent tariff:
“President Trump’s pause on his reciprocal tariffs provides an opportunity for everyone to reassess the situation. AED encourages continued negotiations that result in free and fair trade, and in long-term certainty for the equipment industry and our customers. The time is now for our leaders in Washington to focus efforts on enacting tax policies that incentivize capital investment and economic growth rather than imposing trade barriers on our key partners.”
Updated April 10, 2025
Dealers Respond to How Tariffs Will Impact the Used Equipment Market
Editor Note: This article originally appeared on the Tractor Zoom blog on April 4, 2025 is is being republished with permission.
On April 2, President Trump announced a sweeping 10% tariff on all countries, with additional reciprocal tariffs aimed at nations with which the U.S. has significant trade deficits. The move has stirred considerable conversation across political, economic, and agricultural circles. Our Tractor Zoom team wanted to cut through the noise and focus on how these tariffs may affect the used equipment market. So we turned to the true experts — our dealer network.
Through a rapid-response survey, we gathered insights from dealership professionals across the country, covering everything from anticipated changes in demand and pricing to broader dealership sentiment. Here's a breakdown of what we learned.
Read the full article here.
Updated April 9, 2025
10 Reasons Economists Dislike Tariffs
In the latest edition of the Economic Compass, Diane Swonk, chief economist and managing director of KPMG Economics, writes that “The shock of the new tariffs roiled financial markets around the world. The risk of a recession went from a remote possibility to probable in a matter of months. The betting markets had the odds at close to 60% as of April 7.”
She goes on to write:
This edition of Economic Compass takes a closer look at the fallout from the most recent round of tariffs. Special attention will be placed on why economists dislike tariffs. Historically, tariffs have done more damage than good and triggered a host of unintended consequences.
If the new tariffs hold, the economy could slip into a recession with a bout of stagflation within months. Stagflation is uncommon and occurs when growth slows and both inflation and unemployment rise.
The Federal Reserve will likely cut short-term interest rates, but not until it is sure that the tariff-induced inflation will abate. Our baseline forecast has the first rate cut occurring in the fourth quarter, but a deeper recession could move that timeline forward.
Click here to read her top 10 list of why economists dislike tariffs.
Updated April 8, 2025
U.S. Farmers a ‘Pawn’ in Trump’s Game of Poker
The Wall Street Journal reporters have been getting quite the education in agriculture these days. Rarely does a week go by that there isn’t major coverage in the WSJ on this “dynamic” industry (how is that for a positive adjective?) we are in.
Pricing volatility, weather, interest rates, inflation, regulations and labor shortages, to name a few. Yet we sensed farmers would start to feel a lift late this winter when the USDA relief was to hit. And then the world changed, accounts were frozen and the alarms sounded. And they sounded again with President Trump’s tariff declarations on “Liberation Day.”
USDA Secretary Brooke Rollins and White House spokesperson Anna Kelly are saying what farmers want to hear, but the new relief packages won’t be developed until the actual impact is known later this fall, Rollins says. Farmers will need to leverage those relationships with their bankers until that time.
To read the full blog, click here.
Updated April 8, 2025
JCB Expands U.S. Manufacturing Plant Amid Impact of Trump’s Tariffs
JCB is set to double the size of a new factory currently under construction in Texas as the company confirmed today that newly announced tariffs will impact its business in the short-term.
JCB has been manufacturing in the USA for 50 years, and last year bought 400 acres of land in San Antonio after recognizing the need to produce even more machines in North America, where the company’s existing manufacturing plant in Savannah, Georgia, has operated for 25 years and employs around 1,000 people.
Read the full press release here.
Updated April 4, 2025
Canadian Manufacturers & Exporters (CME) Statement on U.S. Tariffs
An April 3 statement was issued by the President/CEO of the Canadian Manufacturers & Exporters (CME), Dennis Darby, P.Eng., ICD.D. The member-driven association reports that it directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports. Darby’s statement is shared in its entirety below:
“The last several months have shaken the very foundation of North America’s deeply integrated manufacturing sector. Canadian and American manufacturers are not competitors but partners, co-producing goods that sustain millions of jobs and support thousands of communities across both countries.
Although Canada has, for now, avoided new levies under the reciprocal tariffs announced yesterday by the U.S. administration, the unjustified 25 per cent tariffs on automotive, steel and aluminum products remain in effect. These unfair measures continue to harm manufacturers, workers, supply chains, investment decisions, and overall business confidence.
Manufacturers urge both governments to work together to reinforce — rather than unravel — the North American manufacturing advantage by pursuing a comprehensive renewal of the Canada-United States-Mexico Agreement (CUSMA) to restore trade certainty and bolster industrial resilience across the continent. We continue to call on the Government of Canada to ensure that retaliatory measures are strategic and targeted to minimize the collateral damage to Canadian manufacturers.”
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting.
Updated April 3, 2025
U.S. Tariff Update from the North American Equipment Dealers Association (NAEDA)
The following was issued as a U.S. Tariff Update from the North American Equipment Dealers Association (NAEDA) on April 3, by Eric Wareham, Sr. VP of Government Affairs.
The US Government has announced the details of the reciprocal tariffs to be implemented on April 5th at 12:01 EST. Below are the key takeaways from the Executive Order:
For Canadian and Mexican Origin Goods:
The current preferential tariff treatment allowed under USMCA will continue for qualifying equipment. Canadian and Mexican goods will benefit from a 0% tariff rate, provided they meet the regional value content for USMCA applicability. This provision of the order maintains the status quo for equipment imported to the U.S. from Canada or Mexico.
Canadian and Mexican-originating goods that do not qualify for USMCA will continue to receive an additional 25% tariff and energy goods at 10%. Should the International Emergency Economic Powers Act (IEEPA), through which these tariffs were originally imposed, be terminated, these tariffs will be replaced with a 12% tariff on all non-USMCA qualifying goods.
The previously reported steel aluminum, automotive, and auto parts tariffs will remain in place.
For All Other Foreign Origin Goods:
All other countries will receive a 10% minimum tariff on imports into the US, with additional tariffs for certain countries as listed in the Executive Order.
NAEDA is continuing to monitor announcements and meet with legislators and administrative officials to represent dealers at the policy level. With our DC fly-in scheduled for next week, we will be communicating our priorities with elected officials and gleaning more insight into the shape further negotiations on tariffs will take. You will also be receiving communication from NAEDA related to ongoing discussions with specific manufacturers. It is our goal to be as comprehensive as possible in looking out for the dealer as changes are implemented as a result of tariff policy.
Updated April 3, 2025
AED President Responds to Trump “Reciprocal” Tariff Plan Announcement
On Thursday, April 3, the Associated Equipment Dealers (AED) shared the following:
U.S. President Donald Trump announced his “reciprocal” tariff plan, effectively setting a 10 percent minimum/baseline tariff rate for imports from all countries utilizing claimed authority under the International Emergency Economic Powers Act of 1977 (IEEPA). There are currently no sector or product specific exclusion procedures in place, although the administration has signaled a willingness to commence negotiations with countries. As of now, no specific retaliatory tariffs have been announced although several large trading partners have indicated without modifications, such actions will be forthcoming.
Following President Trump’s Rose Garden announcement, AED’s President & CEO Brian P. McGuire issued the following statement:
“Let’s be clear: AED supports free and fair trade and the reduction of trade barriers for United States exports. It’s unclear whether the president’s plan will accomplish those goals. Nonetheless, AED continues to advocate for dialog between trading partners and calls on the administration and global leaders to quickly work toward a resolution that restores certainty and predictability to the world economy. The equipment industry and our customers can ill-afford a pro-longed trade war that unnecessarily increases the costs of equipment and parts that are critical to building, feeding, and fueling the world.”
Updated April 1, 2025
CNH Announces Temporary Stop Shipment Decision
Farm Equipment has learned that CNH has sent notice to its partners today announcing the company's stop shipment decision in the wake of upcoming tariffs expected to take effect on April 2, 2025. CNH is the parent company to Case IH, New Holland and other brands.
The following statement was sent to Farm Equipment from CNH in response to its inquiry:
We are stopping shipments from North America plants and European imports effective today. This is a temporary move until we assess the full impact of planned tariffs on pricing. There are no impacts to production and parts shipments continue as planned. We will continue to monitor the situation.
Updated March 31, 2025
Impact of Retaliatory Tariffs in Spotlight with AED Alert
Farm Equipment has received notification of a March 27 Tariff Alert issued by the Associated Equipment Distributors (AED) where it cautions on retaliatory tariffs targeting the equipment industry and its advocates in the U.S. and Canada. An excerpt of its notice follows, with full coverage here.
AED cautioned the Canadian Government to take extremely targeted measures to avoid significant economic damages to Canada’s critical industries. Warning about the impact on the Canadian economy of tariffing heavy equipment, parts and related supplies, AED wrote, “To ensure a healthy economy, Canada must urgently build trade infrastructure and ensure there is a secure and competitive construction, mining, agriculture, and forestry industry across the country.”
The association continues to deliver the message in both Ottawa and Washington, D.C., that tariffs are counterproductive and will harm both countries. AED’s President & CEO Brian P. McGuire was on Capitol Hill this past week with equipment dealers from North Dakota, South Dakota, Minnesota, Iowa, and Nebraska, to convey the harm tariffs are causing on the equipment industry and our customers.
Read the full update.
Updated March 29, 2025
Monitoring Turbulent Tariff Times Ahead
The following is a guest blog from John Schmeiser, an ag industry consultant, former CEO of and current Brand Ambassador for the North American Equipment Dealers Association (NAEDA). Schmeiser previously served as President and CEO of both the Canada West Equipment Dealers Association and the Western Equipment Dealers Association.
In the month of March, I crossed the Canada-U.S. border 7 times because of work commitments. Only one of those crossings was at a land border, which was at the Sweetgrass, Montana - Coutts, Alberta crossing. While in line waiting to enter Canada, a semi pulled up beside us in the commercial lane hauling a brand-new New Holland CR 8.90 combine, obviously on its way to an equipment dealer in Alberta.
This model is a flagship of the NH brand and is built at New Holland’s global Center of Harvesting Excellence in Zedelgem, Belgium. These and other models manufactured at this plant make their way to Canada via the United States. While our wait at the border lasted 30 minutes, the truck carrying the combine crossed the border in less than two minutes. This example speaks to the easy movement of farm equipment across the Canada-U.S. border that OEMs, dealers, and customers have experienced since the end of World War 2.
So the question remains: will the relatively free movement of farm equipment continue after President Trump’s 25% tariffs and Canada’s counter tariffs come into play?
To read the full blog, click here.
Updated March 28, 2025
Industry Advisor Assesses Impacts of Tariffs on the Ag Economy
In a recently-published editorial, Pinion Director of Government and Public Affairs Brian Kuehl focuses on ways U.S. agriculture is impacted by trade policies and shares what he feels is at stake for producers under the new tariffs announced by the Trump Administration. Kuehl, who leads the financial services and accounting firm’s Government and Public Affairs service area, leverages his background in environmental law and regulations. As such, his work, “The Impact of Trade Policies on U.S. Agriculture,” is focused on identifying and educating business owners on how to influence and change political systems for a market advantage.
“There’s just so much uncertainty,” said Kuehl in a discussion with Farm Equipment’s Managing Editor on the situation.
In summarizing recent tariff updates and the whirlwind of activity on trade disputes over the past months between the United States, Canada, Mexico and China, Kuehl presents facts and figures impacting farmers, equipment manufacturers and dealerships. Portions of his published article are provided here with permission.
“It is imperative we consider the long-term effects of these trade policies, which could lead to decreased market access and potentially permanent loss of market share to global competitors,” said Kuehl. He adds, “This ongoing uncertainty not only jeopardizes our farmers’ livelihoods but also the stability of food prices and supply chains both domestically and globally.”
With regard to global food production, Kuehl says, “This stake of an escalating trade war is immense as global markets are critical for the financial health of U.S. agriculture.”
“The short-term impacts of a trade war on American agricultural producers and the broader ag industry include immediate price volatility and decreased market access,” says Kuehl. He adds, “Persistent trade conflicts can lead to a loss of market share as global buyers turn to more reliable suppliers, potentially causing lasting harm to the U.S. agricultural sector. Unpredictability severely impacts the ability to plan, invest, and grow. Our producers need stable and fair-trade agreements to thrive in a global market,” says Kuehl. “Producers should be proactive in understanding the specifics of tariff effects and engage with policy makers. Producers must communicate the real-world impacts of these tariffs on their livelihoods. It’s essential to elevate your voice.”
See the full story here.
Updated March 24, 2025
Valmont Provides Update on Tariff-Related Impacts
OMAHA, Neb. — Valmont Industries, Inc. provided the investment community additional clarity on estimated impacts from current U.S. tariffs on imports from Mexico, Canada and China, as well as on imported steel and aluminum.
As discussed on the fourth quarter 2024 earnings results call on Feb. 18, 2025, the Company has comprehensive plans to mitigate the impact of tariffs in 2025. These include pricing actions, targeted cost measures, productivity initiatives and supply chain and logistics adjustments. The Company believes these plans will enable it to be cost neutral on a dollar basis in the second half of fiscal 2025 under both the current tariff regime, and under a scenario where there are no United States Mexico-Canada Agreement (USMCA) exclusions granted for goods the Company imports from Mexico and Canada. Importantly, the majority of products shipped to U.S. customers are manufactured at one of 24 facilities across the U.S.
These plans exclude the potential impacts from any retaliatory tariffs or future additional U.S. tariffs. The Company also undertakes no obligation to update the information in this press release regarding the impacts of tariffs.
Updated March 13, 2025
Canadian Ag Organization Warns of Tariff Impacts on U.S. Farmers
The latest statement from the Agricultural Manufacturers of Canada (AMC) reinforced the organization’s ongoing efforts to bring attention to the tariff issue, the importance of protecting jobs and trade, and action needed to safeguard Canada’s agricultural manufacturing sector.
AMC members export more than $4.2 billion of agricultural implements exported to 148 countries around the world, according to the organization. The growing international demand for premium Canadian agricultural machinery underscores the critical contribution of AMC members in advancing technological frontiers. Their unwavering dedication to excellence enables Canadian agricultural manufacturing to continually set new benchmarks on the global stage, notes the Winnipeg, Manitoba-based association.
The March 10 statement, titled “The Stakes Could Not Be Higher: We Need to Continue Championing Canada,” is shared in its entirety below:
A global economy depends on a stable, predictable trade relationship that respects international trade rules. The instability that has gripped the global markets has created immense challenges for Canada’s agricultural manufacturing sector. While some tariffs have been delayed until April 2nd, the potential harm they could inflict remains a pressing concern.
The tariffs on all goods and the specific additional tariffs on steel and aluminum will trigger severe disruptions in our integrated supply chains. They will also inflate costs for U.S. farmers who depend on Canadian-made equipment and raise the cost of food for families across North America. All this will jeopardize thousands of good jobs in Canada.
As longstanding neighbours, Canada and the United States have cultivated one of the world's most prosperous trading partnerships; however, the interests of our respective workforces and businesses must be duly regarded.
“Tariffs directly threaten jobs, businesses and families across Canada,” says Donna Boyd, President of Agricultural Manufacturers of Canada (AMC). “We have built one of the largest bilateral partnerships and must continue to take decisive action to protect it. The risks to our communities, both economically and ensuring there is adequate food on the table, are too high.”
We support Canada’s commitment to decisive action to preserve this partnership and protect the agriculture industry and more than 2.3 million people – or 1 in 9 jobs that this sector employs. The stakes could not be higher.
Updated March 6, 2025
Legislative Update from NAEDA on Adjusted U.S. Tariffs on Canada and Mexico
The North American Equipment Dealers Association (NAEDA) issued a Legislative Update March 6 offering the latest update on the U.S. Tariffs which had been imposed on Mexico earlier in the week. The statement is shared below:
Today, President Trump announced adjustments to the 25% tariffs imposed earlier this week on imports from Canada and Mexico. In today's announcement, tariffs have been eliminated for goods claiming and qualifying for USMCA preference until a further decision is made April 2, 2025.
For dealers, this means that most products imported from Canada and Mexico will temporarily not be subject to tariffs. However, White House officials have reported that nearly 62% of imports from Canada and 50% of Mexico imports do not comply with USMCA and would be subject to tariffs. We recommend ensuring with your manufacturer that their products can be imported duty free.
NAEDA remains on top of these fast-moving developments and encourages dealers to contact the association with any questions you have concerning this issue. We will continue to provide updates as they occur as we actively work with officials and stakeholders to rationalize new information as it becomes available.
Updated March 5, 2025
Ag Manufacturers of Canada (AMC) Issue Statement on U.S. Tariffs
Agricultural Manufacturers of Canada (AMC) Weighs In on Costly Impact of Tariffs.
On March 4, 2025, the Agricultural Manufacturers of Canada (AMC) issued a press release writing that U.S. tariffs on Canadian goods will cost jobs, trade and economic stability and jeopardize North American food security.
AMC is a national organization which represents over 300 agricultural equipment manufacturers and the companies that support them. AMC members export more than $4.2 billion of agricultural implements exported to 148 countries around the world.
The news release is shared here in its entirety:
U.S. President Donald Trump’s arbitrary imposition of 25 percent tariffs on Canadian goods entering the United States will have an immediate and significant impact on Canadian jobs and families. These tariffs will disrupt decades of strong economic cooperation, endanger thousands of jobs and create unnecessary barriers that damage trade and innovation on both sides of the border.
Donna Boyd, President of Agricultural Manufacturers of Canada says, "Immediate action is needed to safeguard our most vital trading relationship and protect the livelihoods of Canadian farmers and the companies that manufacture equipment that protects the environment, ensures global food security and fuels the future of food through innovation."
AMC members export more than $4.2 billion of agricultural equipment to 148 countries around the world, with 80 percent of these exports destined for U.S. markets. This vital trade is foundational to the economic success of both nations and ensures food security for our cities, towns and families. President Trump’s tariffs will disrupt these crucial cross-border supply chains, and place farmers and manufacturers at risk.
“President Trump’s tariff plan is a direct threat to North American agriculture and manufacturing,” Boyd said. “It will trigger severe disruptions in our integrated supply chains, inflate costs for U.S. farmers who depend on Canadian-made equipment and raise the cost of food for families across North America, all while jeopardizing thousands of high-value jobs in Canada.”
The agricultural manufacturing sector directly employs more than 25,000 workers — from skilled labour to engineers, finance, communications, and agtech, developing innovative intellectual property and creating products that reduce carbon and feed our families and the world. In many small communities — where over half of AMC’s members operate — these jobs are the backbone of local economies. Without immediate intervention, the ripple effects of these tariffs could devastate these regions, leaving families and businesses struggling.
AMC strongly supports a “Team Canada” approach to championing Canada, fighting back against these tariffs, and fostering deeper collaboration with the United States. The Canadian government must continue to urgently work to defend a trade framework that enhances competitiveness and ensures mutual prosperity.
“As neighbours, and allies, Canada and the U.S. have built one of the world’s most successful trading partnerships,” Boyd said. “Now is the time for Canada to take decisive action to preserve this partnership and protect the agriculture industry and more than 2.3 million people – or 1 in 9 jobs that this sector employs. The stakes could not be higher.”
Updated March 4, 2025
Canadian Manufacturers & Exporters (CME) Leadership Condemns Trump Tariffs
On March 3, Dennis Darby, President and CEO of the Canadian Manufacturers & Exporters (CME), issued a statement regarding U.S. tariff implementation. CME is a member-driven association representing more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.
The CME statement follows:
Canadian Manufacturers & Exporters (CME) strongly condemns the United States’ decision to impose 25 percent tariff on Canadian goods and 10 per cent tariff on energy resources. This action undermines the principles of the United States-Mexico-Canada Agreement (USMCA) and threatens the future of the most successful economic relationship in the world.
Canada and the U.S. share an integrated manufacturing sector that has been built up over decades supporting millions of jobs on both sides of the border. At a time of global economic uncertainty, our two countries should be working together to strengthen North American industry – not implementing measures that will hurt businesses, workers, and consumers in both nations.
CME calls on federal government to act swiftly to protect jobs and provide relief to manufacturers most affected by these tariffs. We cannot afford to let these punitive measures weaken Canada’s industrial base.
Furthermore, all levels of government must take urgent action to strengthen Canada’s business investment environment and safeguard the global competitiveness of our manufacturers. Ensuring Canada is a top destination for investment, innovation, and growth requires immediate and sustained efforts.
Next week CME will be in Washington, DC to engage directly with U.S. decision-makers to push for a removal of these unjustified tariffs.
Updated March 4, 2025
25% Tariff Will have 'Significant Impact on Bottom Line'
During a presentation at Commodity Classic in Denver, Kip Eideberg, senior vice president of government and industry relations for the Assn. of Equipment Manufacturers (AEM), addressed the impact the 25% tariff on Canadian goods.
"Well, tariffs are taxes. They're taxes on American companies, on American farmers, on American workers. They will drive up the cost of making equipment in the United States," Eideberg says. "They will make us less competitive in the global marketplace, and they are inflationary, so they will most likely drive up inflation, which is bad news for equipment manufacturers, for farmers and for our customers. And so we are extremely concerned about the tariffs that are set to take place at midnight."
He goes on to say, "One thing to note is that the president is very keen to talk about trade deficits, is laser focused on reducing trade deficits. We actually have a trade surplus as an industry with Canada."
According to Eideberg, the U.S. sends about $10 billion worth of goods to Canada and imports about $3.5 billion. "So for us, obviously 25% tariffs on equipment, attachments, parts components going into Canada is going to have a pretty significant impact on our bottom line," he says. "And Canada is our largest market. And so, as I said, we're very concerned."
The ag equipment industry operates in a global economy, he notes. "We've been playing by these rules now for some time. We started out with NAFTA, then we've had the USMCA," he says, noting that the industry's supply chains are spread out across not just North America but around the world.
"We are an export-dependent industry. If we cannot sell more tractors and combines and any equipment to customers around the world, then we're not going to be able to continue to expand our manufacturing operations in the United States and hire more Americans," Eideberg says.
He says during President Trump's first term, tariffs significantly increased the cost of manufacturing equipment in the U.S. And while manufacturers try to absorb as much of that cost as they can, he says some of the cost ultimately does get passed down to the customers. "That's not great news for farmers and ranchers either considering the headwinds they're facing currently," he says.
Updated February 18, 2025
NAEDA Submits Position on Tariffs to Prime Minister Trudeau
Calgary, Alta. — In response to the looming tariff threats by the United States, NAEDA submitted a position letter to the Prime Minister and some senior Cabinet Ministers. Industry associations across the business spectrum have presented their concerns to the Government of Canada, seeking immediate solutions to counter these very damaging tariffs.
NAEDA stated that any measure that disrupts the highly integrated North American agri-food supply chain would be devastating to both countries and should be avoided. This includes any Canadian tariffs on agricultural machinery. As a net importer of agricultural equipment, any counter tariffs on farm machinery will compound prices for Canadian producers. Coupled with U.S. steel tariffs of 25%, all of these increased costs will be passed down to the consumer, which should be cause for concern about the broader implications of these tariffs.
This volatile environment has made it challenging for all industry associations to identify the most influential and efficient means to respond to these punitive measures. In the Agriculture sector, NAEDA was pleased to join the Canadian Agriculture Consortium – a group created by the Agricultural Manufacturers of Canada (AMC) to work towards a unified objective and coordinated approach for our industry. Click here to view letter to Prime Minister.
“We are proud to partner with our colleagues across the agriculture sector to coordinate a strong response articulating the importance of protecting our integrated industry,” stated Nancy Malone, Vice President, NAEDA Canada.
Updated February 12, 2025
Canadian Manufacturers & Exporters (CME) Condemns Trump Administration Tariffs
The following statement was issued Feb. 10 by Dennis Darby, President & CEO of Canadian Manufacturers & Exporters (CME).
Canadian Manufacturers & Exporters (CME) condemns the U.S. administration’s unjustified decision to impose new tariffs on imports of steel and aluminum from Canada. This decision is yet another move that significantly undermines one of the most successful economic partnerships in the world. Steel and aluminum products are deeply integrated into the manufacturing supply chains of both countries. Between 2020 and 2024, Canada exported an average of $10.6 billion in iron and steel to the U.S. annually, representing nearly 25 per cent of total U.S. imports. Over the same period, Canada’s aluminum exports to the U.S. averaged $14.2 billion per year, accounting for approximately 40 per cent of total U.S. imports. The proposed tariff measures will harm consumers, businesses and workers on both sides of the border. CME urges the federal government to take decisive retaliatory action, and to ensure that strong, responsive support mechanisms are put in place for affected manufacturers. CME will continue to advocate vigorously on both sides of the border to protect Canadian manufacturers and work with governments to try and find permanent solutions to preserve the Canadian and U.S. relationship.
Updated February 10, 2025
China Targets U.S. Farm Equipment with Latest Tariffs
SupplyChainDive.com reported that agricultural and farm machinery manufacturers could soon be affected by tariffs from China after President Donald Trump’s levies took effect Tuesday.
China announced 10% tariffs on U.S. goods, including agricultural equipment, in response to Trump’s decision to impose higher levies on Chinese imports. The new tariffs, which go into effect Feb. 10, apply to more than 50 U.S. farm and gardening products, including mowers, egg sorting machines, sugarcane harvesters, and combines, according to China’s Ministry of Finance. Tractors, sprayers, and planters were also among the targeted items.
The move comes as leading farm equipment manufacturers, including Deere & Co. and CNH, grapple with declining demand. U.S. farm incomes have plummeted from their 2022 peak due to falling corn and grain prices, limiting farmers’ ability to invest in new machinery.
Deere, which is set to release earnings on Feb. 13, did not immediately respond to a request for comment. CNH CEO Gerrit Marx said during an earnings call Tuesday that it was “too early” to assess the full impact of China’s tariffs but indicated the company would review its production footprint in the coming months.
The Association of Equipment Manufacturers, which represents agricultural and construction equipment makers, warned that Trump’s trade policies could further strain the industry.
“The fact remains: tariffs are a tax paid by Americans, and their broad-based application will stifle economic growth and undermine the competitiveness of the United States,” AEM Senior Vice President Kip Eideberg said in a statement.
In addition to agricultural machinery, China also imposed 10% tariffs on crude oil, some cars, and pickup trucks, along with 15% duties on coal and liquefied gas.
Updated February 5, 2025
China Puts 10% Tariff on U.S. Farm Equipment
Reuters reports that on Feb. 4, China has announced a 10% tariff on imports of U.S. farm equipment. The new tariff will start on Feb. 10, 2025.
According to the report, "Beijing also slapped tariffs on U.S. products such as coal, oil and some autos in a rapid response to the new duties on Chinese goods imposed by U.S. President Donald Trump, escalating trade tensions between the world's two biggest economies."
CNH Industrial Expects to Pass Tariff Costs on to Customer
During its quarterly earnings call, CNH Industrial said any potential tariff costs would be passed through to customers.
Following the call, Tami Zakaria, analyst with JP Morgan, noted that CNH is monitoring potential tariffs on components from Mexico, Canada and China, affecting about $400 million in imports. "The company plans to pass these costs to customers through immediate pricing adjustments," she wrote in a note to investors.
CNH imports small to midsize tractors into North America from Turkey, Italy, India and South Korea, while large tractors are made domestically, Zakaria noted. Additional, CNH imports planters from Canada and has a plant in Mexico, but that plant only serves the local market.
"CNH is considering reshoring or relocating assembly to the U.S. if tariffs justify it, but such decisions depend on stable policy conditions," Zakaria noted. "They are running scenarios to assess tariff impacts, considering exchange rates and competition. CNH also highlighted that anticipated tariffs might trigger pre-buy behavior from farmers, affecting inventory and sales."
Michael Shlisky, an analyst with DA Davidson, noted, "In discussing the global tariff situation on our call-back, we got the sense that U.S. tariffs between Mexico, Canada and China will have little effect on CNH's earnings, were they to become permanent. CNH also agreed that retaliatory tariffs on U.S. corn and soybeans would be met with grain purchases in other countries, bolstering those farmers' outlooks and partially offsetting the U.S. downside.
"For now, however, CNH is not making wholesale changes in where it sources or produces product, as tariff policies on all sides will need to firm up before a 12-18 month project to adjust to them is implemented."
Updated February 4, 2025
Prior to Tariffs Being Paused, Dealers Expected Tariffs to be Lifted by March 1
Ahead of the news that President Trump was pausing implementation of the tariffs on Canada and Mexico for at least 30 days, Farm Equipment sent out a text poll that asked by what date dealers expected the tariffs on Canadian ag commodities and machinery wholegoods would be removed. The majority of respondents (61.3%) said they expected they'd be lifted by March 1. On the other end, 6.5% said they thought they'd be in place indefinitely.
Updated February 3, 2025
Tariffs Paused for 30 Days
According to the Associated Press, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have agreed with U.S. President Donald Trump to pause planned tariffs for at least a month.
According to AP reports:
The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that could have crushed economic growth, caused prices to soar and ended two of the United States’ most critical partnerships.
“Proposed tariffs will be paused for at least 30 days while we work together,” Canadian Prime Minister Justin Trudeau posted Monday afternoon on X, saying that his government would name a fentanyl czar, list Mexican cartels as terrorist groups and launch a “Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering.”
The White House confirmed the pause to the United States, which followed a similar move with Mexico that allows for a period of negotiations about drug smuggling and illegal immigration.
Commenting on the pause Associated Equipment Distributors President & CEO Brian McGuire said, “AED commends President Trump for allowing continued dialogue before implementing draconian tariffs. AED looks forward to working with the Trump and Trudeau Administrations to come to a mutually beneficial resolution without placing undue obstacles to trade.”
Farm Bureau and Equipment Manufacturer Organizations Issue Statements on Trump Tariffs
On Feb. 2, the Association of Equipment Manufacturers (AEM) and the American Farm Bureau Federation (AFBF) issued a statement in regards to President Trump’s announcement on the Administration’s implementation of 25% tariffs on Canada and Mexico, and 10% tariffs on China. The entirety of those statements follow.
AEM Senior Vice President Kip Eideberg issued the following statement:
“President Trump is right to focus on securing our border and protecting American communities. But levying tariffs on goods that U.S. equipment manufacturers depend on not only jeopardizes the President’s agenda, including the Trump Administration’s plan for a stronger, more competitive America, but drives up costs for U.S. equipment manufacturers, disrupts our supply chains, and exposes our customers to retaliatory tariffs. The fact remains: tariffs are a tax paid by Americans, and their broad-based application will stifle economic growth and undermine the competitiveness of the United States.
“Equipment manufacturers stand ready to work with the Trump Administration on a trade strategy that holds bad actors accountable, safeguards the benefits of the successful United States-Mexico-Canada Agreement, and bolsters equipment manufacturing in North America.”
Farm Bureau Statement:
American Farm Bureau President Zippy Duvall expressed alarm about potential harm to farmers resulting from the order signed by President Trump imposing stiff tariffs on the United States’ top three agricultural markets by value. An economic emergency was declared to put duties of 25% on imports from Mexico and Canada, with limited exceptions, as well as 10% on all imports from China. Canada and Mexico both announced they would impose retaliatory measures.
“Farm Bureau members support the goals of security and ensuring fair trade with our North American neighbors and China, but, unfortunately, we know from experience that farmers and rural communities will bear the brunt of retaliation. Harmful effects of retaliation to farmers ripple through the rest of the rural economy.
“In addition, over 80% of the United States’ supply of a key fertilizer ingredient — potash — comes from Canada. Tariffs that increase fertilizer prices threaten to deliver another blow to the finances of farm families already grappling with inflation and high supply costs.
“Farm and ranch families answer the call to feed America’s families and the world, and these tariffs and the promised retaliation will put further stress on their livelihoods. More than 20% of U.S. farm income comes from exports, which are dominated by these three markets. Just last year the U.S. exported over $30 billion in agricultural products to Mexico, $29 billion to Canada and $26 billion to China – our top three markets and nearly half of all exports by value combined.
“The uncertainty hits just as operating loans are being secured and spring planting approaches, leaving farmers in a tough spot. We look forward to working with President Trump to position our farmers for success while also ensuring American strength and leadership on the international stage.”
NAEDA Issues Legislative Alert on U.S. Tariffs
On February 3, the North American Equipment Dealers Assn. issues a Legislative Alert to its members, providing information over the U.S. tariffs announced on Feb. 1.
NAEDA Senior Vice President of Government Affairs Eric Wareham provided the following for dealers.
The speculation whether the Trump administration would impose tariffs is over. With an executive order declaring a national emergency related to fentanyl and immigration, President Trump used his authority under executive order to impose a general tariff of 25% on all imports from Canada and Mexico, with a decreased tariff of 10% on certain energy resources from Canada. An additional 10% tariff on existing imports from China rounds out the executive orders signed on Saturday. These tariffs become effective on February 4th.
In response to the imposition of U.S. tariffs, the Canadian federal government released a tranche of initial counter tariffs on U.S. imports at the rate of 25%. These initial tariffs cover CAD $30 billion in U.S. products that include a slew of agricultural commodities, tires for agriculture machinery, lawnmowers and other tractor mounted mowers. Canada has signaled they will impose an additional 25% tariff on CAD $125 billion of U.S. imports after 21 days from the initial counter tariffs. More information about Canadian tariffs can be found here.
Mexico and China have not released information on their counter tariffs yet, but it is heavily assumed they will target U.S. agricultural commodities.
Effective Date of Tariffs
Tariff enforcement will begin on February 4th. For all products entering the country on or after that date, the 25% tariff will be imposed. For all products already in the U.S. before that date, the tariff will not be imposed, even for goods with accounts payable still outstanding. For clarity on future price increases, we advise contacting your OEM to discuss details.
Next Steps
This week, NAEDA will be advancing letters to the White House and Congress urging exclusion of agricultural machinery from existing and future tariffs. NAEDA will be working with stakeholders across North America to convince leaders that the interests of food security combined with current market realities requires exempting agricultural equipment from the escalation of tariffs.
NAEDA will continue to monitor the situation for exemption and exclusion processes in both the U.S. and Canada and will keep dealers updated as the situation evolves. Please contact your association offices with any questions or concerns you have.
Updated January 31, 2025
AED Sends Appeals to U.S. and Canadian Leaders on Tariffs
On January 31, the Associated Equipment Distributors (AED) delivered letters to both U.S. President Donald J. Trump and Canadian Prime Minister Justin Trudeau, urging both nations to refrain from imposing tariffs on imported goods from each country.
President Trump has indicated that he will place 25 percent tariffs on Canadian imports on February 1 and Prime Minister Trudeau has threatened to retaliate. In the correspondence, AED’s President & CEO Brian P. McGuire reiterated the importance of the U.S.-Canadian strong cross-border relationship and the integrated nature of our economies.
“The equipment sector is by nature, an international industry, and there’s no stronger bond than that between the United States and Canada,” McGuire wrote to both leaders. "AED encourages greater collaboration and cooperation that results in shared prosperity without imposing harmful tariffs detrimental to both countries.”
Outreach to American President
The letter sent to President Trump from Brian P. McGuire, President and CEO of AED, said this:
I am writing on behalf of Associated Equipment Distributors and our members to urge you to maintain the strong cross-border trade relationship with our most important trading partner—Canada.
AED is the international trade association representing companies that sell, rent, service and manufacture construction, farm, mining, energy, forestry and industrial equipment. Our members include American and Canadian companies, many of whom conduct business on both sides of the border.
We look forward to working with you to implement your American First agenda, including making permanent the Tax Cuts & Jobs Act, unleashing domestic energy production, and regulatory reform.
However, the equipment sector is by nature, an international industry, and there’s no stronger bond than that between the United States and Canada. Consequently, we encourage you to reconsider placing tariffs on imported goods from Canada.
The United States and Canadian economies are closely integrated and indiscriminate tariffs on all Canadian imports would have harmful repercussions for U.S. consumers and companies. Expected retaliatory measures would further exacerbate the situation.
Preventing illegal immigration and illicit drugs from entering the United States through the northern border is necessary and, thanks to your leadership, the Canadian government has indicated a willingness to work together on these issues. We encourage greater collaboration and cooperation that results in shared prosperity without imposing harmful tariffs detrimental to both countries.
Thank you for your time and consideration.
Outreach to Canada
The letter sent to Canadian Prime Minister Trudeau said this:
I am writing on behalf of Associated Equipment Distributors and our members to urge you to maintain the strong cross-border trade relationship with our most important trading partner—the United States.
AED is the international trade association representing companies that sell, rent, service and manufacture construction, farm, mining, energy, forestry and industrial equipment. Our members include American and Canadian companies, many of whom conduct business on both sides of the border.
We have written President Trump to stress that the heavy equipment sector is by nature, an international industry, and there’s no stronger bond than that between the United States and Canada. Consequently, we have encouraged President Trump and his administration officials to reconsider placing tariffs on imported goods from Canada.
We are stressing to the Trump administration and congressional leaders in Washington that the United States and Canadian economies are closely integrated and indiscriminate tariffs on all Canadian imports would have harmful repercussions for U.S. consumers and companies. Retaliatory measures would further exacerbate the situation.
We know you and all the Premiers are encouraging greater collaboration and cooperation with the United States as a better path toward shared prosperity without imposing harmful tariffs detrimental to both countries.
Updated January 31, 2025
Guest Blog: Boycotting the U.S. Over Trump’s Proposed 25% Tariff on Canadian Goods is Short Sighted Thinking
For over 10 years, I joked that I had a leg on each side of the Canada – U.S. border. I had the privilege of running an international trade association of Canadian and U.S. equipment dealers and we tried our best to serve dealers in both countries as well as we possibly could. I worked out of Kansas City, Mo., but grew up in western Canada; the son of an equipment dealer who was a dual U.S. – Canadian citizen. Like all of my proud and patriotic American friends and colleagues, I was equally proud to be Canadian and always will be. But as much as we Canadians cherish our national identity, it's impossible to ignore that Canada and the United States share more than just a border—we share an integrated equipment market as part of a larger harmonized economy, similar supply chains, and common strategic interests. The geographic reality means the U.S. is not just a neighbor to Canada but a necessary partner, an economic ally intertwined with our prosperity.
President Trump has repeatedly stated that effective Feb. 1, Canada and Mexico will face a 25% tariff on goods unless concrete measures are taken to secure the border. The President has also mused that if Canada doesn’t like it, they can become the 51st state. This sabre rattling has sent the Canadian political and business leaders into crisis mode. Although some steps have been taken by governments to strengthen the Canadian side of the border, and it certainly is in Canada’s best interests to do so, the concern is that it may be not enough. As you can imagine, the issue is dominating the news and coffee row chatter. Making things worse is a leadership void, Prime Minister Justin Trudeau has announced he will step down. The Liberal Party is in the process of selecting its new leader, and ultimately the new Prime Minister. The void at the federal level has forced the provincial premiers to step up in a “Team Canada” approach to protect their provincial industries and interests. Although work is being done, there still is no consensus on how to fight back.
Some are suggesting dollar for dollar tariffs as a response. Other are suggesting boycotting U.S. products. I believe both options are wrong.
Updated December 3, 2024
Staff Blog: Canada Reacts to Tariff Threat
While everyone’s still talking turkey and figuring out what to do with their leftovers, I’m thinking rabbits. As in rabbit holes. As in tracking the hot topic that is the threat of 25% tariffs by President-Elect Trump, which he posted on a social media outlet Nov. 25.
After doing a deep dive into data from the Canadian segment of Ag Equipment Intelligence’s 2025 Dealer Business Outlook & Trends Report last week, I was curious to learn how our counterparts across the northern border feel about the potential impact of threatened tariffs. So down the rabbit hole I went.
What was I looking to find? The manufacturer’s view. How much Canadian equipment manufacturers rely on the U.S. How little or how much of a concern it is for the Canadian ag industry overall. Here’s a snapshot summary of what I found. The reaction came in fast and furious.
Being the intel seeker that I am, both by nature and by mandate of my role, I dug a little further to see what those closest to the issue, and those who study numbers for a living, had to say. The Radio Canada headline, “Trump tariffs would crush Canada’s economy: Why some industry leaders are calling his bluff” definitely got my attention. As did the fact that on Nov. 25, the Canadian dollar fell to its lowest point since 2020 after the tariff threat on Canadian imports by the President-Elect.
Updated September 30, 2024
Staff Blog: Trump Wrong About John Deere Tariffs, but for Different Reasons Than Chicago Tribune Reports
On September 29, 2024, The Chicago Tribune published an editorial-board piece titled, “Trump's attack on Deere was off-base.”
The op-ed piece came down on former President Donald Trump for his threatening words about Deere’s layoff and resourcing plans. From a speaking gig in Pennsylvania last week, the GOP presidential hopeful shared his intent to slap a 200% tariff on green machinery returning to the States. The piece’s authors wrote “Trump’s threat of tariffs is particularly rich because as president he negotiated the 2018 trade deal with Mexico and Canada under which Deere is shifting some production to Mexico.”
I agree with the criticism of Trump’s words in this case, but for different reasons than what’s covered by the Tribune Editorial Board.
In fact, I was asked about the topic yesterday at a tailgate party in the most blue-collar town in the NFL – Green Bay, Wis. And hopefully I’ll state it a little more eloquently than I did in the Lambeau Field parking lot, in-between sips of my Wisconsin-Style Bloody Mary (for you folks keeping score, that includes pickle spear, mozzarella, venison sausage and mushrooms).
Updated September 27, 2024
On the Record: USMCA Would Prevent Trump’s 200% Tariff Threat on Deere
Republican presidential nominee and former president Donald Trump made headlines this week during a policy roundtable in Smithton, Pa.
During the roundtable, Trump brought up Deere’s announcement earlier this year that it would be moving some production to Mexico by 202
He said, quote, “I’m just notifying John Deere right now: If you do that, we’re putting a 200% tariff on everything that you want to sell into the United States.”
There’s one major roadblock to that threat, however — the United States-Mexico-Canada Agreement, signed by Trump when he was president in January 2020, which replaced the North American Free Trade Agreement. USMCA prohibits the leverage of tariffs on a range of goods, allowing companies to manufacture in Mexico and Canada and export back to the U.S. without high cost
When the USMCA was signed 4 years ago, it was reported that nearly 30% of all equipment produced in the U.S. is intended for export and Canada and Mexico are the first and second-largest export markets for both U.S. construction and agricultural equipment. Since the creation of NAFTA two decades ago, the equipment manufacturing industry has benefited greatly from duty-free access to our industry’s largest two export markets, Canada and Mexico.
Updated September 24, 2024
Trump Threatens Deere with 200% Tariff if Production Moves to Mexico
Reuters’ Gram Slattery and Kanishka Singh reported that “Donald Trump said on Monday he would slap a 200% tariff on John Deere’s imports into the United States if the company moved production to Mexico as planned, comments that hit the agricultural equipment manufacturer’s share price. Earlier this year, John Deere announced that it was laying off hundreds of employees in the Midwest and increasing its production capacity in Mexico, a decision that upset workers and some political leaders.”At an event held in western Pennsylvania, Trump said he would also slap automakers with similar tariffs and is using tariffs as a central part of his economic plan should he win the Nov. 5 election. While the strategy is designed to protect American jobs from foreign competition, economists warn that such measures could increase inflation.
Deere, facing rising costs and declining demand, announced plans earlier this year to lay off over 800 workers in Illinois and Iowa. "Moline, Illinois-based Deere said in a statement it is committed to U.S. manufacturing with $2 billion invested in domestic plants since 2019.”
Source: Farmdoc | Read more »
