Tractors and Tariffs

[atsah]

Or they will buy a different tractor that has less or no tariff's.. If someone needs a tractor, they will buy one..

 

[RSR]

And let's remember that 5% doesn't sound like much to many, but it can be the breaking point for some. 5% on $20,000.00 is $1,000.00 which can kill a deal for some. Yes, I know they aren't raising the full price of any given machine, but larger machines could go up that much. It can mean buying a different brand that hasn't raised their price (yet), or buying used instead of new. Or not buying at all. If sales start falling, who does that help?

The point of the article seems to be that the entire tractor price does not go up 5%. Only parts (and potentially material) sourced from China will go up that much.

I admittedly know virtually nothing about the costs associated with tractor manufacturing, but my educated guess is that a small percentage of the total tractor cost is comprised of parts, or raw materials, coming from China. There are lots of costs associated with marketing, engineering, overhead, etc. that get rolled into that total cost.

On a $20k tractor, the cost of production to the manufacturer, before they sell it to the dealer is what, maybe $15k (total guess)? If even 1/3 of those costs, which seems really high, are from materials and parts subject to tariffs, you are talking about a roughly 5% increase on $5k, so $250 on the total tractor cost. That's pretty small.

 

[Jstpssng]

There will always be a negative while trying to get out of a ditch I guess.. Some of the positive things I have read that he is working on I never heard come out of the mouth's of the men before him, let alone try to do something about them.. I think he is doing the best he can with what he has..

I don't care for him, yet I do think that he believes he is doing what's best for the country. Sometimes you have to rock the boat to wake people up. Time will tell if it works. We just lost a governor who also rubbed people the wrong way, and it isn't taking very long to undo everything he/we did over the last 8 years to get the state back on an even keel.

 

[atsah]

I don't care for him, yet I do think that he believes he is doing what's best for the country. Sometimes you have to rock the boat to wake people up. Time will tell if it works. We just lost a governor who also rubbed people the wrong way, and it isn't taking very long to undo everything he/we did over the last 8 years to get the state back on an even keel.

It's a tough row to hoe..

 

[big bubba]

do hope the tariffs provide expected results. the working man & woman certainly deserve it. & no doubt, China is derelict in the trade imbalance.

in terms of overall fiscal responsibility, well....please teach your children well when it comes to financial hard times. this administration has thrust the next generation into a nightmare of deficit & debt. apparently the congressional enablers have turned a blind eye to the traditional fiscal responsibility of Conservatives. anyway, maybe in the short term, the tariffs will work. only time will tell.
in the meantime, happy tractoring. & hope your kids will be able to enjoy as ourselves. best regards

2 people you should never trust:
a religious leader who tells you how to vote
a politician who tells you how to pray

 

[Oldoak]

id say on that %5. most people finance and really I doubt they will notice or care about the difference of 1,000$

Could that be the reason so many people today are over their heads in debt?

Whether financing or paying cash, $1,000 is still a $1,000. I, for one, always focus on the bottom line, not on the monthly payments.

 

[Jstpssng]

I always focused on the initial cost, with no real idea what the (tractor, truck, snowmobile,...) was going to cost me in repairs in the near future. Too many times I bought items which should have been headed for the junk yard, it's taken 60 years for me to finally see the light.

 

[Diggin It]

the working man & woman certainly deserve it.

They may not be able to afford it any more.

 

[Industrial Toys]

Not only is it the reason people are up to their eyeballs in debt, but I don't have the slightest doubt that many things cost as much as they do, because no one is expected to pay cash for them. It just boggles my mind, how many things I see that have no price on them, just the bi-weekly payment amount.

 

[Oldoak]

It just boggles my mind, how many things I see that have no price on them, just the bi-weekly payment amount.

Yep, even some of the car ads on television flaunt the "low" monthly payment and never give the actual price of the vehicle.