Tariff uncertainty and rising costs weigh on heavy equipment dealers

North America, August 16, 2025

News Summary

A survey of 160 verified North American dealerships finds tariff uncertainty is the top concern for dealers, followed by rising equipment costs and tighter financing. Most dealers report a cautious or worried market outlook, with many expecting buyers to pause purchases, lengthening replacement cycles and slowing inventory turnover. Dealers say excess inventory and high prices are tying up customer capital. In response, many are exploring technology solutions—especially AI-driven pricing and valuation tools, CRM systems and automated lead generation—to protect margins, move inventory and advise customers on extending equipment life.

Tariff uncertainty and rising costs top dealers’ worries; Deere flags profit hit and trims outlook

Heavy equipment dealers across North America are heading into 2025 on edge, with tariff uncertainty and rising machine prices ranked as the top business threats and a major manufacturer reporting tariff-driven financial pain that tightened its yearly outlook.

Key findings and market mood

A survey of 160 verified North American dealerships conducted in April and May 2025 found that 70% of dealers cited tariff uncertainty as the biggest economic disruptor for the year. 66.3% of respondents singled out rising equipment costs as a top pressure point, while 49.1% reported financing challenges as a barrier to sales.

Overall sentiment was muted. Most dealers described their 2025 market outlook as concerned or very concerned, and only 36% reported feeling cautiously optimistic. Nearly three-quarters of dealers expect economic pressure to cause buyers to pause equipment purchases, which dealers say will lengthen replacement cycles and increase average equipment lifespans on customer lots.

How sellers are reacting to inventory and buyer behavior

Dealers facing surpluses identified multiple reasons buyers were delaying purchases: 38% said customers were holding off because of high costs, while 30.1% said excess inventory was tying up customer capital and causing further delays. The combination of higher prices and capital constraints is contributing to slower buying decisions and a spillover effect on dealer cash flow and stock management.

Technology interest as a response

Faced with uncertainty, dealers are looking to technology to sharpen pricing and sales efforts. Interest in tools shows a clear tilt toward automation and data-driven decisions: 45% of respondents selected AI-driven pricing and valuation tools as a priority, 34.4% picked customer relationship management (CRM) systems, and 33.7% chose automated lead generation tools.

Manufacturer impact: tariff-driven hit and tighter outlook

In parallel with dealer feedback, a major equipment manufacturer reported a profit reduction tied to tariffs and adjusted its annual outlook downward. The company said tariffs have increased costs and pressured margins, prompting a more conservative forecast for the year. Dealers and manufacturers are now both contending with the direct cost impacts and indirect demand shifts that follow tariff changes.

About the survey and the data source

The findings come from a 2025 dealer insights report produced by an industry data provider that supports contractors, manufacturers, dealers, rental companies, lenders, insurers and public agencies in heavy civil construction. The firm has published equipment valuation and rental rate information for more than six decades and makes the full 2025 dealer insights report available for free download.

Practical implications for dealers and buyers

• Dealers should plan for longer equipment aging in customer fleets and prepare for slower turnover.
• Inventory strategies may need to shift toward capital-efficient models to avoid tying up funds when buyers pause purchases.
• Investing in pricing analytics and automated marketing tools could help dealers respond faster to changing buyer behavior and protect margins.
• Financing options and flexible terms may be needed to move equipment as customers face higher costs and limited capital.

Reporting on parts of the content was contributed from a correspondent in Bengaluru and the material was edited before publication.

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FAQ

Key features at a glance

Feature	Detail
Survey size	160 verified North American dealerships
Top economic concern	Tariff uncertainty — 70% of dealers
Rising equipment costs	66.3% of dealers cited this as a top pressure
Financing challenges	49.1% reported financing as a barrier to sales
Dealer sentiment	Majority concerned or very concerned; 36% cautiously optimistic
Expected buyer behavior	Nearly 75% expect purchase pauses and longer replacement cycles
Top tech interests	AI pricing tools (45%), CRM (34.4%), lead gen automation (33.7%)
Manufacturer impact	Tariff-driven profit hit and tightened annual outlook reported

Deeper Dive: News & Info About This Topic

Additional Resources

• Reuters: Deere quarterly profit falls as US tariffs hit farm equipment margins
• Wikipedia: John Deere
• Equipment Finance News: Equipment dealers face mounting tariff concerns
• Google Search: equipment dealers tariffs 2025
• Colorado Politics: U.S. producer prices surge in July as tariffs push costs higher
• Google Scholar: producer prices tariffs 2025
• Tom’s Hardware: EU fab tool makers get reprieve in EU–U.S. tariffs deal
• Encyclopedia Britannica: semiconductor equipment tariffs
• The Cattle Site: US–China extend tariff truce
• Google News: US China tariff truce 2025