Whilst I fully agree with your observations (and ta for the photos), I have to ask where you and/or this picture was taken.
If it is on an ocean coastal area, then the salt-water environment (mist) would have accelerated the rusting.
Alternatively, if this tiller was shipped from China/overseas then the salt-water environment would have produced the same result.
I am close enough to the coast that I have to pay for hurricane insurance but not close enough for salt spray to touch anything. The tiller sits maybe 15mi from the sea as a crow flies. If it's made in USA by Tarter as suggested a few posts up, then I don't see why it would have been shipped across any ocean.
But let's say it had been shipped from China. The way the paint is lifting off in large flakes is not the same type of coating failure I'm accustomed to seeing on shipboard equipment (typically pock marks, bubbles, anywhere the paint got nicked and water hit metal). This seems (to me, a relative layman) to be the result of poor surface prep prior to painting. But maybe I've never a piece of shipboard equipment with powdercoated surfaces, and how they look when they fail.