The agricultural equipment market is facing the same challenges the overall ag economy and a lot of it has to do with uncertainty, according to Association of Equipment Manufacturers (AEM) Senior Vice President Curt Blades.
“That uncertainty is leading to people feeling a little bit uncomfortable about making capital equipment purchases, so until we get rid of that uncertainty, that’s just sort of the market we are at,” said Blades.
The uncertainty includes the impact of the new administration’s tariff policy. Kip Eideberg with AEM’s Government Relations office addressed the issue of the 25% tariffs on goods from Mexico and Canada that were just implemented. “Tariffs are taxes on American companies, on American farmers, on American workers. They will drive up the cost of making equipment in the United States, they will make us less competitive in the global marketplace, and they are inflationary,” said Eideberg. “Canada is our largest market, so we are very concerned.”
Eideberg said AEM is preparing a report on the impact of tariffs on the industry to be released later this month.
Association of Equipment Manufacturers (AEM) press conference – supply and demand, impact of tariff policy
Curt Blades, Senior Vice President of Industry Sectors & Product Leadership; Kip Eideberg, Senior Vice President, Government & Industry Relations & Communications
AEM press conference 15:22