Agricultural and farm machinery manufacturers could soon be affected by retaliatory tariffs from China after President Donald Trump’s levies took effect Tuesday.
Trump over the weekend ordered 10% higher tariffs on imports from China and threatened Canada and Mexico with duties that were later delayed. After the president’s tariffs on Chinese goods took effect, the country struck back with its own 10% tariffs on agricultural machinery and other U.S. goods, which take effect Feb. 10.
More than 50 U.S. farm and gardening products such as mowers, egg sorting machines, sugarcane harvesters and combines were listed as subject to tariffs, according to China’s Ministry of Finance. Several types of tractors, sprayers and planters were also included on the list.
China’s tariffs come as Deere & Co, CNH and other farm equipment makers struggle with sluggish demand. After peaking in 2022, farmer incomes have drastically declined in response to lower corn and grain prices, leaving little to no room for heavy equipment upgrades.
Deere, whose earnings come out Feb. 13, did not immediately respond to a request for comment on the effects that China’s retaliatory tariffs may have on its sales and operations.
CNH CEO Gerrit Marx said in an earnings call Tuesday that it was “too early” to say what impact the changing trade landscape will have on the company’s operations, but will evaluate its production footprint in the months ahead.
The Association of Equipment Manufacturers, which represents agriculture and construction equipment makers, said Trump’s tariff war not only drives up materials costs but also disrupts supply chains and exposes customers to retaliatory tariffs.
“The fact remains: tariffs are a tax paid by Americans, and their broad-based application will stifle economic growth and undermine the competitiveness of the United States,” AEM Senior Vice President Kip Eideberg said in a statement.
In addition to agricultural machinery, China placed 10% tariffs on crude oil and some cars and pickup trucks. The country also declared 15% duties on coal and liquefied gas.
