Tariffs: A New Rubik's Cube Each Day

The tariff situation directly hits everyone at the FEMA Supply Summit. Even the few that are doing all U.S. business and with U.S. components will soon feel the impact of the steel tariffs. Most OEMs in attendance are sourcing key components or materials throughout the globe.

 AEI asked one Canadian farm equipment manufacturer who does business on both sides of the border what life has been like in recent weeks following the Canadian tariff situation.The shortline manufacturer described the tariff situation as "having 49 of the 54 stickers on a Rubik's cube" reshuffled each and every night and having to consider a new what-if path the following morning.

 Other manufacturers advised their peers to practice high-diligence at all steps of what might have been considered "normal cost of business" including line-item reviews from freight forwarders. Several longtime ag equipment executives advised over-communication with suppliers, customers and distributors as lack of information — even if it ends up being only temporary — can lead to paralysis.

 This may be of particular note with dealers who work with shortlines and can be confused by multiple approaches taken by multiple suppliers.

 Kubota is getting out ahead communicating to its dealers. Our editors learned that the OEM communicated with its dealers on April 9 that it wouldn’t be doing anything until May 1.

 For more on-going coverage of the tariff situation visit Farm-Equipmnet.com/tariffs2025.

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