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Strategies & Market Trends : World Outlook
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From: Les H9/29/2025 4:36:01 PM
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US steel tariffs push construction equipment prices up across the board
Neil GerrardSenior Editor, Construction Briefing
29 September 2025

A level playing field?

Whereas the April 2025 ‘Liberation Day’ tariffs set import rate taxes at 10-30% (or even higher for some countries like China), the Section 232 steel and aluminium tariffs effectively shift the tariff level for finished construction equipment, associated parts, components and spares into the 40-50% range, Off-Highway research has found.

The tariffs may result in US-based buyers attempting to switch to US-made equipment.

But there are two obstacles that are likely to limit the effectiveness of such a strategy: First of all, there are many categories of equipment that are not made in the US or are made only by a small number of suppliers.

And US manufacturers are likely to face higher input costs in any case, due to tariffs on the imported components and materials that will be taxed on entry to the country before being used in their machines.

Then there’s the fact that some US brands actually manufacture entire finished machines overseas. The steel content of those machines will also be subject to the expanded tariffs.

The upshot is that US equipment buyers are likely to be forced either to pay more, or to cancel their investment plans as a result.

The latest in a series of inflation warnings

Off-Highway Research’s report add weight to a growing body of evidence that the tariffs are likely to be inflationary.

constructionbriefing.com
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