Tractors and (upcoming) tariffs?

[Muhammad]

Used car auction prices are already spiking.

Trade in offers from carmax and carvana are showing 10-20% increases from a week ago.

There's also some degree of chaos as carmakers don't know if they should wait out the storm short term (some are holding cars at the port) or swallow the tarriffs for the next few weeks and see if there's some sort of backtrack or deal made for automobiles.

 

[ruffdog]

There's also some degree of chaos as carmakers don't know if they should wait out the storm short term (some are holding cars at the port) or swallow the tarriffs for the next few weeks and see if there's some sort of backtrack or deal made for automobiles.

What if dealers have a bunch of high priced (tariffed) vehicles on the lots and the tariffs get taken off in 2 months? They will never be able to sell those heavily taxed vehicles when cheaper ones are sitting next to them. Dealers are not going to want a bunch of tariffed vehicles after the tariffs stop. I think customers and dealers are going to play the waiting game to see what the future holds.

 

[Hay Dude]

1995 did a major hospital expansion and most everything made in USA.

Anesthesia machines, surgical lights, sterilizers, operating room tables, etc. USA

5 years later in 2000 some of the same now sourced from Europe.

The last 10 years most from China even from old American companies like GE…

With some items options are limited… I’ve been pushing for over a year to retire some 1995 equipment and expect large price increases going forward…

So much of what is used and consumed in the medical field is imported…

Tariffs have a big effect on the survival of American companies.

 

[ruffdog]

What if dealers have a bunch of high priced (tariffed) vehicles on the lots and the tariffs get taken off in 2 months? They will never be able to sell those heavily taxed vehicles when cheaper ones are sitting next to them. Dealers are not going to want a bunch of tariffed vehicles after the tariffs stop. I think customers and dealers are going to play the waiting game to see what the future holds.

and....I bet the same thing will happen with imported parts. People will search the dealer network to find un-tariffed parts before ordering the heavily taxed ones, and dealers sure won't want to be sitting on those tariffed ones on the shelf. Economy slows while prices go up....stagflation.

 

[ruffdog]

Let’s see what Fords cost two months from now. These sales are on pre-tariff vehicles. Many car dealers in my area are advertising pre-tariff sales. And some commercials say that when these vehicles are gone, prices will increase by 25%. “So get these while they last.” These commercials play on radio every 15 minutes and they are different dealers.

“Because the demand is there right now, it makes sense [to offer consumer incentives] because everyone’s saying, ‘Gotta go get it now,’ might as well go ahead and reap the benefits now in case we do go into a recession,” Keating said.

https://www.cnbc.com/2025/04/05/automakers-seek-opportunity-in-the-chaos-of-trumps-tariffs.html

 

[Tinhack]

and....I bet the same thing will happen with imported parts. People will search the dealer network to find un-tariffed parts before ordering the heavily taxed ones, and dealers sure won't want to be sitting on those tariffed ones on the shelf. Economy slows while prices go up....stagflation.

Inventory typically doesn't work that way. Companies use a last in, first out pricing. So, everything will get the price of the current item placed in inventory. Even old inventory gets the current pricing.

 

[Mtsoxfan]

Legitimate question, answer in laymans terms please...

How is it that the US, when applying tarrifs that match what other countries are charging us, sends us into whatever you call the tailspin we are currently in? And that tailspin, being both financial and media reporting, real and sensationalized.

 

[Muhammad]

What if dealers have a bunch of high priced (tariffed) vehicles on the lots and the tariffs get taken off in 2 months? They will never be able to sell those heavily taxed vehicles when cheaper ones are sitting next to them. Dealers are not going to want a bunch of tariffed vehicles after the tariffs stop. I think customers and dealers are going to play the waiting game to see what the future holds.

Mfg will have to eat the tariff if that happens.

 

[Paystar]

I won't have to worry unless Canada starts a trade war with China and Japan, because I only buy CF Moto's and Kubota's.

I'm still waiting for China to send me one of their $30,000 F150 copies, LOL

 

[Muhammad]

Legitimate question, answer in laymans terms please...

How is it that the US, when applying tarrifs that match what other countries are charging us, sends us into whatever you call the tailspin we are currently in? And that tailspin, being both financial and media reporting, real and sensationalized.

The tariffs don't match what other countries are charging us. That's one of the biggest issues. The tariff was apparently calculated as the trade deficit divided by total trade and then presented as "what they're charging us" but that's not a tariff.

The United States buys more from almost every country than they buy from us. "Trade deficit" is created. If anything we also play that game with things like Chinese EVs which have had a 100% tariff since last year, essentially banning the import.

The reason there's chaos and uproar is because costs of imported goods to the U.S. are going to go up. Consumers can't afford this because we're already broke due to the inflation we've been hit with post-covid. This increase could in turn bring some exports to a crawl. Or maybe importers will demand lower prices which hurts all foreign economies. Or realistically there's some mix of all of that.

Everyone from logistics companies to people selling yoga mats on Etsy are going to be hit by this. Some harder than others but nobody really knows as of yet.

On the tractor front, we've discussed that this could mean significantly higher prices on some tractors but minimal impact on others based on where they are sourced and assembled. That may be a great example of the design of the tariff policy, but it also is going to literally cause small dealerships to go out of business if it comes to pass. Any time you have a financial policy that has such harsh ramifications, you're going to spook the markets.