German ag equipment manufacturer Claas has announced a major production shift: starting with the 2026 model year, LEXION 8000 Series combines destined for Canada will be assembled in Germany instead of the company's U.S. plant in Omaha, Nebraska.
The move is aimed at avoiding the 50% steel and aluminum tariffs currently imposed between the United States and Canada. Claas cited the need to remain competitive in Canadian markets under current trade conditions.
"To remain competitive in the Canadian market under current tariff and trade conditions, CLAAS will transition production... to Germany," the company said in a public statement.
While machines for the Canadian market will now be produced at Claas facilities in Harsewinkel or Bad Saulgau, LEXION combines for the U.S. market will continue to be built in Omaha, with most components still sourced domestically.
U.S. Prices Hold - For Now
Claas added a silver lining for U.S. farmers: prices will remain stable until December 31, 2025, despite ongoing tariff challenges. Customers considering a new combine, tractor, or forage harvester are encouraged to lock in purchases before potential price hikes hit in 2026.
A brand new, 2026 LEXION combine rolls off the assembly line at the Claas factory in Omaha, Neb. The German manufacture recently celebrated 100,000 LEXION combines built in the U.S.
The production decision comes amid a busy year for Claas in North America:
Launched its Jaguar 1000 forage harvesters for the U.S. dairy market, with deliveries expected in time for the 2026 harvest.
Broke ground on a new R&D center in Omaha to strengthen its regional innovation capabilities.
Expanded its dealer network across several Midwestern states.
Despite the changes, the company reaffirmed its commitment to the U.S. market. Claas is actively hiring sales and service personnel nationwide and continues to assess preorder data to guide future combine output from Omaha.
Tariffs Remain a Structural Challenge
At the 2025 Farm Progress Show, Claas VP Eric Raby confirmed the company had been absorbing tariff-related costs without fully passing them onto customers. But he warned that the 50% aluminum and steel tariffs would be a long-term hurdle.
"This is going to affect our industry much more broadly than just the origin of a single machine," Raby said. "We're still analyzing the full implications."
Currently, equipment made in Germany and shipped to the U.S. faces a 15% blanket import tariff, far lower than the 50% rate for cross-border goods between the U.S. and Canada. That differential drove Claas's decision to shift Canadian-bound production back to Europe.