Tractors and (upcoming) tariffs?

[tjandrews]

So do I simply because with existing pre tariff stock, there is no tariff imposed but greedy businesses WILL impose the tariff percentage on items already in stock to make a larger profit which is totally BS.

Nothing new here. For many years, when the price of crude oil went up, the price at the pump would immediately follow, even though the cost of fuel already in the tanks had not changed. The justification? The sellers claimed they would have to pay more to replace the inventory they were selling.

 

[5030]

Additionally, we have an acute labor shortage in this country today and it's not because the labor market isn't there, it's because many of the current labor pool DON'T WANT TO WORK IN THE FIRST PLACE. If they do want to work, they all want a Cadillac wage from the get go and full benefits right from the start and many aren't willing to perform any manual labor anyway, let alone pass a drug test which is still mandatory for employment in an industrial setting.

I know about that first hand and one of the main reasons I retired as a manager. When you cannot hire enough employees to man a full shift because they cannot pass a drug screen or they come to work for a day or two and realize manual labor is involved and never come back because they actually had to do manual labor, it's very frustration. The outfit I retired from was a revolving door for employees because unlike the old days, none of them (or at least a large percentage really don't want to work in the first place. They prefer to collect public assistance and do nothing constructive to better themselves.

Sadly, we live in a society that does not want to work and if they do and pass a drug screen, they don't last at all.

Why I retired as the grief level at least for me was not sustainable.

 

[Muhammad]

No. You brought it up, and it's 100% relevant here because most of these compact tractors come from Korea and other western Pacific and Indian nations.

He is asserting that these tariffs are not being described in honest fashion, and I don't think that's true.

As far as how it's affecting the ability to buy a tractor, it's obvious that there is already an effect. The point is that in the long run this will benefit the U.S.

Yes. Discussing how the administration arrived at their tariff numbers is absolutely a political discussion and this particular thread is not the place for it. We have one thread dedicated to politics so that all other threads can remain free from the endless debate that is associated with politics.

 

[Muhammad]

@5030 One of the biggest questions is how the value of those parts will be determined for the purpose of tariffs. I guess if there's an invoiced cost of an item it's easy but if an engine is manufactured by a mfg in Japan and then shipped to the US where the tractor is assembled, how will they be required to state the value? To the consumer that engine might cost $10,000 but every step back to the mfg factory in Japan cuts a big chunk off that price until you might wind up with a much smaller number to base the tariff. Let's say the material and labor cost is $2,000... now the tariff is about $500 on a $10,000 engine that goes into a $35,000 tractor that is assembled in the U.S. Now do that for a bunch of parts and pieces and maybe you've got $1,000 in tariffs on a $35,000 tractor vs 25% of a wholesale price of a tractor made entirely in South Korea and you begin to see how this can really hurt some brands and be much less impactful for others.

 

[Snobdds]

Folks just don’t get it.

Rates are declining, Bessent is a happy man.
His North Star is the UST 10 yr yield. Not the Fed!

Tariffs will eventually force the Feds hand.

Let the crazies in the equity futures have their fun.

The real information is in the credit markets.

UST 10 yr about to break 4%

This is about putting working americans over asset prices. This is addressing inflation via demand, instead of supply.

Bold...

 

[ruffdog]

So do I simply because with existing pre tariff stock, there is no tariff imposed but greedy businesses WILL impose the tariff percentage on items already in stock to make a larger profit which is totally BS.

People rushing to purchase a tractor, car, or TV at pre-tariff prices is only moving a future purchase to the present. We saw how that worked with cash-for-clunkers. It was only a short term fix. There will come a day that prices will be much higher and there will be a buyer drought. At that time, the retailers will be hurting. Retailer's may be trying to get any money they can before the bottom drops out by raising the costs of pre-tariff stock.

 

[Snobdds]

People rushing to purchase a tractor, car, or TV at pre-tariff prices is only moving a future purchase to the present. We saw how that worked with cash-for-clunkers. It was only a short term fix. There will come a day that prices will be much higher and there will be a buyer drought. At that time, the retailers will be hurting. Retailer's may be trying to get any money they can before the bottom drops out by raising the costs of pre-tariff stock.

No...

Companies are still going to defend market share. While others raise prices, it provides an avenue for companies to boost revenue, by attracting customers through margins.

Like anything, successful companies will navigate this and be better on the other side. It's a reset of sorts...

https://twitter.com/x/status/1907487821079704034

 

[5030]

We saw how that worked with cash-for-clunkers.

That was a fiasco. Lots of perfectly useable vehicles were destroyed, The used car market got crazy and no one really benefitted.

People seem to have short memories today...

 

[Snobdds]

I'll give up some gains in my portfolio if it means that tens of millions of Americans have a better chance of finding stable work so they can feed their families, afford a home, and benefit from lower consumer prices.

The world is dependent upon the US for consumerism. The hotels in Washington will be packed with foreign leaders wanting to meet to get their tariffs reduced.

 

[5030]

I just ordered a new disc mower from Kubota, center swing and interestingly, the advertised price didn't increase from pre tariff price even though the machine was built in Italy and 'imported' to here, I presume in an overseas container.

FYI. Kubota is offering 0 percent financings and a 1500 buck 'loyalty' bonus on select equipment as well.

All of Kubota's hay tools are produced in Italy (I believe at least), my Kubota BV Sileage Special round baler was. I would also suspect that the large Kubota tractors will be subject to the tariff, maybe a higher percentage than the ones produced in Japan because they are coming from Italy as well and I bet the European made units (that Hay Dude likes) will really be impacted by the tariff simply because they are European units.

I have no idea what the tariff percentage is being applied and to which countries of manufacture either. All I know is the whole thing is going to be very complex.

Do I think this tariff thing is a good deal? I'm 100% on the fence with it but having said that, I have no choice or input in the matter anyway and neither does anyone on this forum have a choice, other than not making the purchase in the first place.