Ag Matters: Farm Equipment Caught in Trade Standoff

Beginning September 8, Canada is expected to double tariffs on American steel and aluminum from 25 percent to 50 percent and impose additional tariffs on hundreds of U.S. products, including agricultural equipment. Equipment manufacturers warn the move could disrupt the North American market and drive up costs across the farm economy. Kip Eideberg with the Association of Equipment Manufacturers says Canada remains the industry’s most important export destination.

Eideberg says new tariffs will ultimately be felt by the people who buy and use farm machinery.

He says those costs can add up quickly since modern equipment supply chains routinely cross the U.S.-Canada border multiple times before a machine reaches the customer.

With tariffs set to take effect in just weeks, the equipment industry is urging leaders on both sides of the border to return to negotiations.

Kip Eideberg, Senior Vice President of Government and Industry Relations with the Association of Equipment Manufacturers, says a renewed trade agreement and greater market certainty would do more to support manufacturers, dealers, and farmers than any short-term relief programs.