Tractors and (upcoming) tariffs?

[charlessenf]

Ah, the dismal science.

We have seen administrations attempt to control what corporations do with laws, and regulations, and tariffs, too. I've been watching for over sixty years.

They are trying to control the markets. instead of learning how to benefit from the ways the markets work best. We seem to think our way is better than 'their way' even as experience has shown that we don't always get it right.

We are but a small fraction of the world's population - indeed, or population has recently stagnated and is aging fast.

The purported rationale for these 1890 tariffs is to force manufacturing to return to our shores. But they moved off shore because the incentives and ROI dictated the move - they kept their HQ in the US because of the protection such citizenship afforded them, their shareholders and their profits.

Capital has no conscience or loyalty. Look at all the Russian Oligarchs going along with (and funding) Putin.

Look at the Dias at the recent presidential inauguration and our Pay Pals from South Africa pushing their grand dad's Technocracy from the White House.

We have our Oligarchs and they have us. Tariffs are the least of this republic's worries.

The price of an Indian John Deere - is that your concern?

 

[ismilelots]

I think this might be a good incentive for JD and others to bring jobs back to the US. As for parts, they used to be made in the US as well until NAFTA encouraged world trade and had companies shopping for cheap labor across the globe.

 

[tradosaurus]

Assembled yes. But are the parts made in US?

That would be true for almost every manufacturer.
I think Tesla can lay claim to the most american made car.

 

[bdhsfz6]

In the short term, I see businesses in the US using these tariffs to make a profit.

I ordered a Canadian made implement last month through my local lealer in PA. The dealer in turn ordered it from a distributor in OH who had several in stock. The distributor told the dealer there would be a 20% price increase unless the implement was shipped before the tariff took effect.

Luckily, the original effective date was delayed and I was able to take delivery before the tariff took effect.

The distributor did not pay this tariff since the implement was already in stock. They were going to charge the dealer (and me) 20% more, which would have been pure profit.

 

[jyoutz]

I think this might be a good incentive for JD and others to bring jobs back to the US. As for parts, they used to be made in the US as well until NAFTA encouraged world trade and had companies shopping for cheap labor across the globe.

With the cost of US labor and benefits (health insurance), companies will likely rely on new manufacturing that is heavy to robotics. The 1970s manufacturing jobs aren’t going to return.

 

[Blue Mule]

Please take this to the politics thread.

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.

 

[5030]

In the short term, I see businesses in the US using these tariffs to make a profit.

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.

 

[5030]

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.

The issue with your statement is, what percentage of the units are made here and what percentage are made offshore in countries with the imposed tariff's

It's going to be very complex, determining what percentage is made offshore and what percentage is produced here. Case in point Kubota as an example. Kubota produces some sub assemblies like loaders for instance, in their Georgia plant (backhoe's included) but import a gob of tractors and engines from Japan and last time I bought Kubota filters, they were marked made in Malaysia for Kubota. Going to be interesting in as much as this administration really has no idea what is made where actually.

It will be interesting to see how they determine what is tariff applied and what isn't.

World class manufacturing has really diluted and blurred that where it's made statement today. With some stuff made here (at least in the case of Kubota) and other stuff made offshore and imported, will be interesting in the least.

One thing for certain and that is Mahindra will get slammed as Indian products are ALL subject to tariff but again, what is already here in America, should not be tariffed though I can see manufacturers applying it to already stateside tractors and accessories, just for the greed factor.

Like the Mahindra mini Jeep that is assembled in their facility in Michigan but 100% of the parts come in, in a container from India. All that is done here is the assembly of the imported parts.

 

[tjandrews]

With the cost of US labor and benefits (health insurance), companies will likely rely on new manufacturing that is heavy to robotics. The 1970s manufacturing jobs aren’t going to return.

Not just manufacturing jobs.
Amazon, who sells, among other things, tractor parts (Must keep this on-topic), built a regional warehouse in my area a few years ago. Micron, an American company that builds memory chips (No doubt some of which are destined for new tractors), is attempting to build a new chip fab in the area(if the federal money doesn't dry up), as well.
Both are reputed to be heavily reliant on robots, to keep labor costs down.

 

[jyoutz]

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.

You are speculating regarding long term benefits. Nobody knows how this will play out. The last experience this country had with across the board tariffs in the 1930s certainly didn’t end well.