Tractors and (upcoming) tariffs?

[Blue Mule]

CNH Industrial, the company behind Case IH and New Holland equipment, has announced an immediate halt to all equipment shipments from both North American plants and European imports. This move is in response to the uncertainty surrounding upcoming tariffs and their impact on pricing.

According to CNH's official statement:

Thankfully, the last payment to them was sent for our New Holland tractor a few months ago.

Having said that, I want to remind everyone that these tariffs are RECIPROCAL tariffs. And, in many cases President Trump is only applying tariffs at 25-50% of what the other nation is applying to us. It's only fair, and in my opinion it should have been done YEARS ago, but rarely do we ever have a man serving as President who actually puts the U.S. first.

As someone already said, this will be painful for a little while as adjustments are made, but in the long run this will be VERY good for the U.S.

 

[quicksandfarmer]

Thankfully, the last payment to them was sent for our New Holland tractor a few months ago.

Having said that, I want to remind everyone that these tariffs are RECIPROCAL tariffs. And, in many cases President Trump is only applying tariffs at 25-50% of what the other nation is applying to us. It's only fair, and in my opinion it should have been done YEARS ago, but rarely do we ever have a man serving as President who actually puts the U.S. first.

As someone already said, this will be painful for a little while as adjustments are made, but in the long run this will be VERY good for the U.S.

They aren't reciprocal tariffs in any sense that those words would normally be used. Most of the world has low or no tariffs with us now.

The Trump people looked at the balance of trade for each country, and the total trade with that country. They imposed a tariff equal to the trade deficit divided by the total trade. So if a country does $100 billion in annual trade with us, and we have a $20 billion trade deficit, they get a 20% tariff.

Trump has this fixed idea that if we have a trade deficit we're somehow losing money, we're buying more than we're selling. But what he's missing is that the reported trade balance doesn't include investment. Trade plus investment has to balance, if it doesn't your currency will adjust until it does. The reason we run a trade deficit is that the whole world wants to invest in the US, wants to buy US government bonds and the stocks of US companies.

These tariffs are not be good for the US in the short term or the long term. They will choke off the flow of investment. They will also impoverish consumers and we'll probably see a recession this year.

 

[Muhammad]

Please keep this discussion on topic of tariffs related to tractors. You guys know where the politics thread is.

 

[Blue Mule]

They aren't reciprocal tariffs in any sense that those words would normally be used. Most of the world has low or no tariffs with us now.

The Trump people looked at the balance of trade for each country, and the total trade with that country. They imposed a tariff equal to the trade deficit divided by the total trade. So if a country does $100 billion in annual trade with us, and we have a $20 billion trade deficit, they get a 20% tariff.

Trump has this fixed idea that if we have a trade deficit we're somehow losing money, we're buying more than we're selling. But what he's missing is that the reported trade balance doesn't include investment. Trade plus investment has to balance, if it doesn't your currency will adjust until it does. The reason we run a trade deficit is that the whole world wants to invest in the US, wants to buy US government bonds and the stocks of US companies.

These tariffs are not be good for the US in the short term or the long term. They will choke off the flow of investment. They will also impoverish consumers and we'll probably see a recession this year.

So when they say Taiwan is applying a 90% tariff on goods exported to the U.S. and we're in turn going to apply a tariff of 40% on goods they export to us, you're saying that the U.S. is lying? Or fudging the numbers? In the press conference today they specifically listed numerous nations and the exact amount of tariff they have imposed upon us for what they export into the U.S.

 

[Muhammad]

So when they say Taiwan is applying a 90% tariff on goods exported to the U.S. and we're in turn going to apply a tariff of 40% on goods they export to us, you're saying that the U.S. is lying? Or fudging the numbers? In the press conference today they specifically listed numerous nations and the exact amount of tariff they have imposed upon us for what they export into the U.S.

Please take this to the politics thread.

 

[rumwrks]

Copypasta summarization of the currently known tariffs:

• A 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States
• 34% tax on imports from China (actually on top of the previous 20% so 54% total)
• 20% tax on imports from the European Union
• 25% on South Korea
• 24% on Japan
• and 32% on Taiwan
• Vietnam 46%
• India 26%
• Norway 15%
• Moldova 31%
• Thailand 36%
• Iraq 39%
• Democratic Republic of the Congo 11%
• Republic of the Congo 10%
• Angola 32%
• Cameroon 11%
• Falkland Islands 41%
• Mozambique 16%
• Zambia 17%
• Switzerland 31%
• Indonesia 32%
• Malaysia 24%
• Cambodia 49%
• UK 10%
• Zimbabwe 18%
• Malawi 17%
• Syria 41%
• Vanuatu 22%
• Liechtenstein 37%
• Guyana 38%
• Libya 31%
• Equatorial Guinea 13%
• South Africa 30%
• Brazil 10%
• Bangladesh 37%
• Singapore 10%
• Israel 17%
• Fiji 32%
• Tunisia 28%
• Ukraine 10%
• Nicaragua 18%
• Kazakhstan 27%
• Laos 48%
• Côte d'Ivoire/Ivory Coast 21%
• Botswana 37%
• Venezuela 15%
• Philippines 17%
• Mauritius 40%
• Chad 13%
• Nigeria 14%
• Saint Pierre and Miquelon 50%
• Chile 10%
• Nauru 30%
• Algeria 30%
• Brunei 24%
• Jordan 20%
• El Salvador 10%
• Pakistan 29%
• Namibia 21%
• Myanmar 44%
• Sri Lanka 44%
• Serbia 37%
• Madagascar 47%
• Bosnia and Herzegovina 35%
• Lesotho 50%
• North Macedonia 33%
• Norfolk Island 29%
• Réunion 37%

Canada and Mexico are not on the new list specifically.

 

[jyoutz]

Copypasta summarization of the currently known tariffs:

• A 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States
• 34% tax on imports from China (actually on top of the previous 20% so 54% total)
• 20% tax on imports from the European Union
• 25% on South Korea
• 24% on Japan
• and 32% on Taiwan
• Vietnam 46%
• India 26%
• Norway 15%
• Moldova 31%
• Thailand 36%
• Iraq 39%
• Democratic Republic of the Congo 11%
• Republic of the Congo 10%
• Angola 32%
• Cameroon 11%
• Falkland Islands 41%
• Mozambique 16%
• Zambia 17%
• Switzerland 31%
• Indonesia 32%
• Malaysia 24%
• Cambodia 49%
• UK 10%
• Zimbabwe 18%
• Malawi 17%
• Syria 41%
• Vanuatu 22%
• Liechtenstein 37%
• Guyana 38%
• Libya 31%
• Equatorial Guinea 13%
• South Africa 30%
• Brazil 10%
• Bangladesh 37%
• Singapore 10%
• Israel 17%
• Fiji 32%
• Tunisia 28%
• Ukraine 10%
• Nicaragua 18%
• Kazakhstan 27%
• Laos 48%
• Côte d'Ivoire/Ivory Coast 21%
• Botswana 37%
• Venezuela 15%
• Philippines 17%
• Mauritius 40%
• Chad 13%
• Nigeria 14%
• Saint Pierre and Miquelon 50%
• Chile 10%
• Nauru 30%
• Algeria 30%
• Brunei 24%
• Jordan 20%
• El Salvador 10%
• Pakistan 29%
• Namibia 21%
• Myanmar 44%
• Sri Lanka 44%
• Serbia 37%
• Madagascar 47%
• Bosnia and Herzegovina 35%
• Lesotho 50%
• North Macedonia 33%
• Norfolk Island 29%
• Réunion 37%

Canada and Mexico are not on the new list specifically.

25% tariffs on South Korea is going to upend the affordable tractor brands market.

 

[Muhammad]

25% tariffs on South Korea is going to upend the affordable tractor brands market.

At this point we should compile a list of tractors that are assembled in the U.S. as the tariff impact will be much lower.

JD and Kubota specifically assemble many models in the U.S.

 

[Tpondel]

At this point we should compile a list of tractors that are assembled in the U.S. as the tariff impact will be much lower.

JD and Kubota specifically assemble many models in the U.S.

Assembled yes. But are the parts made in US?

 

[jyoutz]

At this point we should compile a list of tractors that are assembled in the U.S. as the tariff impact will be much lower.

JD and Kubota specifically assemble many models in the U.S.

True, but parts are imported.