How Construction Equipment Market Is Dealing With Us Tariffs In 2025?

Import tax and tariffs have the biggest impact on the construction equipment industry. A slight fluctuation in these taxes may disturb the regular pricing and cost of the equipment. 

Recently US tariff laws have been in the limelight due to the unexpected increase and their impact on several markets. Hence, Off-Highway Research has recently conducted a study on the topic revealing something amazing to know for all the stakeholders.

The study has explained everything in detail about how the industry is dealing with the tariffs laws and import taxes upgrades.

New tariff lowered the demand and raised the prices

All the stakeholders, contractors and consumers of heavy equipment know well that the US industry heavily depends on the imports since 1980s.

In this situation when the nation is depending on the imports of heavy equipment, a slight change in the import law or tariff majorly affects the overall industry. The same thing happened recently with the US heavy equipment industry when President Trump revised the Tariffs.

This has directly made the demand lower and increased the prices of equipment as the dealers have to pay a huge amount for importing the equipment from across the border.

Not only does the buyer have to suffer with these price increases but the impact is on both sides of the supply chain including the equipment trader. 

The cost of equipment that isn’t manufactured in the United States or is only made by a few groups of vendors quickly increases. Additionally, domestic manufacturers are not exempt. Now you just got an idea of how does this go.

Since many of them rely on imported parts to construct their machines, rising input costs are now compelled to be passed on to clients.

The outcome? Definitely, a price increase that could easily halt demand anywhere in the market.

The Major OEMs are not even exempt from it

Major American OEMs are not immune to the consequences of tariffs, despite what you may believe. 

Global sourcing and manufacturing are key components of many of the largest brands in the US construction industry. Actually, a sizable amount of their machinery or parts are sourced from foreign vendors.

Therefore, the influence is broad, whether a huge construction company is upgrading its fleet or a small contractor is looking to purchase a used motor grader. 

As a result of the increased costs, many people are beginning to postpone or reduce their investment intentions.

This reduction in purchases is directly impacting the overall net sales of the OEMs. 

For example, CNH Industrial has recently revealed its sales report which is down by 22%. This is merely an example of how tariff and import law fluctuation affect the sales of the major OEMs.

How can you stay ahead of the edge?

In addition to highlighting the issues, the Off-Highway Research examines the steps suppliers and manufacturers are doing to mitigate the impact. 

All the companies are looking into a variety of tactics, such as moving manufacturing facilities or redesigning supply networks, to reduce the effects of tariffs. 

To lessen their reliance on components impacted by tariffs, some are even revamping their product lines.

However, these fixes require time. 

The analysis makes it obvious that the whole construction equipment business will have to adapt to a new cost reality in the near future.

Why This Is Important to Buyers of Used Equipment

At MY Equipment, we closely monitor the impact of worldwide trends on our customers. 

More buyers may turn to used construction equipment as a result of the tariff hike since it offers greater value without sacrificing performance. Used machinery, particularly from reputable resellers, is increasingly a more sensible and strategic investment as the cost of new equipment rises.

If you want to upgrade or grow your fleet in 2025, it’s important to consider how tariffs can affect your total cost of ownership. 

All you need to do is to simply contact our team with your project details and we’ll get you on the most suitable machine for your project. 

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