A leading North American equipment group is warning tariffs could further hurt an already struggling industry, and they are asking Canada to work now to avoid any further damage.
The North American Equipment Dealers Association has written senior officials in Canada, warning any measures that could affect the supply chain should be avoided, including tariffs on ag machinery. Canada imports a large number of machines, and they warn a tariff war could be costly for farmers there.
The Association of Equipment Manufacturers is also concerned, saying any increases in steel prices will roll down hill.
“Steel prices go up by 30 percent, and it goes without saying that the prices have a ripple effect. And it’s not as simple as wanting to buy only U.S.-made steel. It’s a global market, so those tariffs do have a ripple effect. We’re paying close attention to that. We’re paying close attention to all the tariffs, you know, including those that are involved with Canada and Mexico, and knowing that we are in a global supply market. The number of times that a piece of equipment or a piece of fertilizer, a piece of seed crosses the border before it ends up in the farmer’s hands is pretty astounding, so those tariffs do have an impact,” said AEM’s Curt Blades.
The North American Equipment Dealers Association says it is working with Canada to minimize the impact to the industry.
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