CNH Industrial has temporarily suspended its shipments of farm machinery from North American plants and imports from Europe, awaiting President Donald Trump’s expected tariff announcements on April 2. The company stated that the move is a precautionary measure to evaluate the potential impact of the tariffs on pricing.
“This pause is temporary as we assess the full implications of the planned tariffs,” a CNH Industrial representative told Farm Progress. “There will be no impact on production, and parts shipments will continue as planned. We will closely monitor the situation.”
The uncertainty surrounding the tariffs is causing widespread concern in the farm equipment industry.
“It wouldn’t be surprising if other Original Equipment Manufacturers (OEMs) follow suit and pause shipments to determine how to manage the situation,” said Brian McGuire, president and CEO of the Associated Equipment Distributors, an international trade organization. “Most machinery, whether for farming, construction, or mining, relies on global supply chains. Even domestically produced equipment often uses international parts.”
If President Trump’s proposed tariffs are implemented, equipment prices are expected to rise significantly. Even machines assembled within the U.S. will face price increases due to the global sourcing of parts. Dealers, who buy equipment from manufacturers, will pass these added costs onto farmers, impacting both new machines and replacement parts.
“It’s no secret that consumers ultimately bear the cost of tariffs,” McGuire noted. “The question is: how much will this increase the price of equipment? Some dealers might absorb the costs to honor pre-existing contracts with farmers.”
However, McGuire pointed out that OEM-dealer agreements typically include provisions for price fluctuations. Some dealers, who have already sold equipment that hasn’t yet been shipped, are now left questioning whether they will face tariffs on those units. “What do I do now? We signed an agreement,” McGuire said, summarizing the concern.
He concluded, “The impact of these tariffs will undoubtedly unsettle the equipment market. That’s putting it mildly.”