Agricultural Equipment Makers Warn of Price Increases Due to Tariffs

Agricultural Equipment Makers Warn of Rising Costs Due to Tariffs As tariffs imposed by the Trump administration increase, manufacturers like AGCO Corporation and CNH Industrial are preparing to raise prices on their farm machinery. These duties, which include a 15% tariff on European exports to the U.S., are expected to lead to higher equipment costs for farmers globally. AGCO plans to distribute the added costs evenly across its product range, including premium Fendt tractors and combines produced in Europe. CEO Eric Hansotia stated, "We are confronting significant expenses and aim to manage them by spreading costs across all our offerings." The tariff landscape remains uncertain, with recent reports indicating initial levies of at least 10%. Consequently, companies are strategizing to reduce costs while maintaining profitability, with AGCO projecting a modest 1% price increase in 2025, though this may change. Similarly, CNH Industrial announced a price hike for its 2026 model year equipment, citing increased steel and aluminum tariffs that have driven up raw material costs. CFO James Nickolas explained, "Most units sold recently haven't been significantly impacted by the new...