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 for 2025; major OEM reports tariff-driven profit hit

Tariff uncertainty is the primary concern for heavy equipment dealers going into 2025, according to a recent dealer survey, with rising equipment prices and tighter financing also weighing heavily on the industry. At the same time, one major manufacturer has reported that tariffs have cut into profits and has tightened its annual outlook, underlining how trade policy is affecting both makers and dealers.

Key findings up front

The survey of 160 verified North American dealerships conducted in April–May 2025 found that 70% of dealers cited tariff uncertainty as the biggest economic disruptor for 2025. 66.3% flagged rising equipment costs as a top problem, and 49.1% pointed to financing challenges.

Dealer mood and market expectations

Overall sentiment among dealers is low. The majority described their market outlook for 2025 as concerned or very concerned, and only 36% described themselves as cautiously optimistic. Nearly three-quarters of respondents expect economic pressure to prompt buyers to pause equipment purchases, which dealers say will likely stretch equipment replacement cycles and extend the time machines remain on customer lots.

Inventory and customer behavior

Among dealers who reported feeling the effects of equipment surpluses, 38% said customers are delaying purchases because of high costs. Another 30.1% said excess inventory is tying up customer capital and contributing to those delays. Dealers expect these trends to produce longer ownership windows and slower turnover of fleet assets over the coming year.

Technology interest as a response

Facing market pressure, many dealers are considering new technologies to gain visibility and speed. Interest was highest for AI-driven pricing and valuation tools (selected by 45%), followed by CRM software (34.4%) and automated lead generation tools (33.7%).

Manufacturer impact

A major original equipment manufacturer reported that tariffs had reduced profit margins and prompted a tighter annual outlook, a sign that trade and tariff shifts can ripple from factories through dealer networks. That company’s revised view reinforces dealer concerns that tariff instability can change pricing, production planning and financing conditions on short notice.

What dealers say they will do

Dealers are preparing for longer sales cycles and shifting strategies to protect margins and move inventory. Plans include adopting pricing tools, strengthening customer relationship systems, and rethinking inventory and financing offers. Many dealers also expect to advise customers on extending equipment life and on refurbishing older machines rather than immediate replacement.

About the survey and data source

The findings come from a targeted survey of 160 verified North American dealerships conducted in April–May 2025 by a long-standing equipment data company that provides valuation and market intelligence for contractors, manufacturers, dealers, rental companies, lenders and insurers. The company has operated in the heavy civil construction equipment space for more than 60 years and publishes widely used rental and valuation guides.

Bottom line

Tariff uncertainty and rising equipment costs stand out as the biggest immediate threats to dealer health in 2025. The combination of trade policy risk, higher prices and constrained financing is already slowing buyer decisions and creating inventory pressures. Dealers are turning to technology and strategy shifts to manage the changing market, but many remain worried about the short-term outlook.

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FAQ

Key features at a glance

Feature	Details
Survey sample	160 verified North American dealerships (April–May 2025)
Top concern	Tariff uncertainty (70% of dealers)
Other major concerns	Rising equipment costs (66.3%), financing challenges (49.1%)
Dealer sentiment	Majority concerned or very concerned; 36% cautiously optimistic
Customer behavior expectations	Nearly 75% expect buyer pauses and longer replacement cycles
Top tech interests	AI pricing/valuation (45%), CRM (34.4%), automated lead gen (33.7%)
Manufacturer impact	Tariffs reported to have trimmed profits and led to a tighter annual outlook

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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