Friday, August 22, 2025

Steel tariffs hit farm machinery exports


The new 50 per cent United States tariffs on Canadian products that contain steel and aluminum are being applied to many pieces of farm machinery.


They do not apply to machinery made in the United States and being returned there.


Canadian-made machinery deemed compliant with the Canada-U.S-Mexico free trade agreement are also exempt.


But a tractor made in Europe or Asia would be hit by the tariffs.


For example, Mike Hahn of Hahn Farm Equipment said a $50,000 CIH 5240 would be taxed $7,500 because they are made in Germany.


The $7.500 tariff must be paid by the Canadian exporter who would presumably add it to the purchaser’s price.


Hahn said “in our experience so far . . . (that) prevents the sale. 


“The sad thing about these tariffs is that the end user is the person that loses. The middle-class working people pay more and the poorly-run governments and the rich people that control it make millions, NO WAIT BILLIONS !!!!” he wrote in an e-mail.


“The new steel tariffs and for that matter all tariffs are raising the price of all NEW products being sold. Especially to the farming industry which is facing underpriced commodities.”


He went on to say when farmers thrive, everyone benefits, but the reverse also applies.