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, P
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 »