By Emma George-Griffin
Experts say prices on farm equipment are expected to rise, even after the Trump administration lowered tariffs in June.
Tariffs on equipment made from steel, aluminum and copper decreased from 25% to 15% on June 8 after President Trump signed a proclamation. Yet experts say the decrease isn’t enough to relieve manufacturers or farmers in a struggling market.
“We appreciate the [a]dministration’s move to lower tariffs on agricultural equipment, but the real-world savings are limited,” said Richard Gupton, the senior vice president of public policy and council for the Agricultural Retailers Association.
Gupton said the proclamation also states that tariffs will now be applied to the full value of farm equipment, not just the steel components.
“Until this issue is addressed, ag retailers face a difficult choice,” Gupton said. “Delay equipment purchases or absorb costs they cannot pass on to farmers already under financial pressure.”
Plus, Gupton said any imported steel parts used in American-built equipment are still subject to tariffs — increasing costs for manufacturers.
Source : ipmnewsroom.org