The impact of a 50% tariff on imported steel and aluminum, enacted August 18, is reverberating through the farm equipment industry, adding significant cost burdens to both OEMs and producers. From sourcing strategies to pricing decisions, manufacturers are making fast adjustments to absorb-or offset-these increases.

Deere: $600 Million in Tariff Impact

At John Deere, the impact is being felt in hard numbers. During the company's Q3 2025 earnings call, Investor Relations Director John Beal estimated a $600 million tariff-related impact on Deere's 2025 balance sheet. While Deere did not comment on specific changes in pricing or sourcing, the figure highlights the severity of the issue across the manufacturing chain.

Case IH: 80-90% U.S.-Made but Not Immune

Case IH Vice President Kurt Coffey says 80-90% of the company's machines are built in U.S. facilities, with 95% of steel sourced domestically. Still, the daily executive team briefings on global trade underscore the urgency of adapting to fast-moving policy changes.

"We're trying to scale across the business to manage short-term shocks," Coffey said. Much of Case IH's equipment is presold months in advance, meaning sudden tariff increases result in unexpected cost burdens for already-committed units. That creates friction in pricing and fulfillment just as producers prepare for harvest.

Claas: European-Made Equipment Faces New Hurdles

German-based Claas, which produces 80% of its row crop machinery in Europe, faces a more complex challenge. Senior VP Eric Raby says the company is still assessing the full implications of the new tariffs but has already been absorbing many costs to avoid pushing them onto customers.

"The 50% steel tariff is a whole different animal," Raby said. "We're working to source more materials domestically and shorten supply chains, particularly in our Omaha, Nebraska facility."

He emphasized the need for supply chain versatility, noting that the industry learned painful lessons during COVID about over-reliance on global suppliers.

New Holland: Balancing a Global Footprint

New Holland , a menudo considerada una marca europea, fabrica aproximadamente la mitad de sus equipos para cultivos en hileras en la UE y el 40 % en Norteamérica. Ryan Schaefer , vicepresidente de Norteamérica, señaló que la empresa opera ocho plantas en EE. UU. y mantiene una sólida presencia en Canadá .

Schaefer said the tariff challenge has been a learning curve, especially for manufacturers unused to navigating such aggressive trade shifts. "It's not impossible-but it's something new for many in our industry," he said. "It's forcing everyone to rethink how and where they build."

Who Pays the Price?

While companies are working hard to shield farmer-customers from the full brunt of these cost increases, the longer tariffs remain in place, the more likely they are to be reflected in equipment prices, financing terms, or availability constraints. For manufacturers balancing legacy orders with new cost structures, each unit delivered is now a more complicated equation.

With harvest approaching and global supply chains still strained, manufacturers are caught between maintaining reliability and absorbing rising costs. Whether through onshoring, material substitutions, or price increases, the industry is being reshaped by policy at the border-and pressure in the field.