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 tops dealer worries as Deere tightens outlook

Tariff uncertainty and rising equipment costs are the chief concerns for heavy equipment dealers in 2025, according to a dealer survey released this year. The survey found broad unease across the market, with many dealers expecting buyers to hold off on purchases and equipment replacement cycles to slow.

Top-line findings

A survey of 160 verified North American dealerships conducted in April–May found that 70% of dealers identified tariff instability as the biggest economic disruption for 2025. Rising equipment costs followed closely, named by 66.3% of respondents. Financing challenges were also common, cited by 49.1% of dealers.

The overall mood among dealers was low. Most described their equipment market outlook for 2025 as concerned or very concerned, while only 36% said they felt cautiously optimistic. Nearly three-quarters of dealers expect economic pressure to cause buyers to pause purchases, which is likely to stretch out replacement cycles and lead to longer equipment service life on customer sites.

How dealers say pressure shows up

Dealers reporting the effects of equipment surpluses pointed to several reasons customers delay purchases. 38% said customers delay purchases because of high costs. Another 30.1% said excess inventory was tying up customers’ capital and causing purchase delays. Those trends combine to increase used-equipment supplies and keep more machines on customer lots for longer.

Dealers look to technology for help

To manage pricing, valuation and customer pipelines, dealers showed interest in new tools. The most popular choices included AI-driven pricing and valuation tools (selected by 45% of respondents), CRM software (34.4%) and automated lead generation tools (33.7%). The interest suggests dealers are seeking ways to work more efficiently and to better target the buyers who remain active.

Industry context and company actions

The report notes that the supplier and dealer ecosystem is facing the combined effects of tariff swings, higher input and equipment prices, and tighter capital conditions for some buyers. In a related development, a major equipment manufacturer reported a profit hit tied to tariffs and tightened its annual outlook, underscoring the real and immediate financial impact tariffs can have across the supply chain.

The survey is from a data and market information owner with a long history serving contractors, manufacturers, dealers, rental firms, lenders and insurers in heavy civil construction. That organization also maintains a well-known rental rate reference used across the industry and is now part of a larger parent company.

What dealers expect next

Most dealers expect equipment replacement cycles to slow as customers extend the life of existing machines. The anticipated pause in purchases could lead to more used inventory and tighter margins for dealers who must carry that stock. Dealers also say managing working capital for customers—helping them finance replacements or trade-ins—will be important if buyers remain cautious.

Takeaway for buyers and suppliers

For buyers, the environment means potential negotiating power as some dealers carry extra inventory. For suppliers and manufacturers, the message is to monitor tariff policy closely and be prepared for demand shifts. Dealers are increasingly turning to technology to improve pricing accuracy and customer outreach, which could influence how machines are marketed and sold over the next 12 to 18 months.

Where to find the full report

The full dealer insights report is made available for public download by the data provider. It contains survey details, breakdowns of dealer sentiment, and additional charts on inventory, financing challenges and technology interest.

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FAQ

Key features at a glance

Feature	Detail / Stat
Survey size	160 verified North American dealerships
Top economic disruptor	Tariff uncertainty — 70% of dealers
Rising equipment costs	66.3% of dealers
Financing challenges	49.1% of dealers
Dealer sentiment	Majority concerned or very concerned; only 36% cautiously optimistic
Buyer pause expectation	Nearly 75% expect buyers to pause purchases
Top tech interests	AI pricing/valuation 45% | CRM 34.4% | Lead gen 33.7%
Report availability	Full report available for download from the data provider

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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