Prices for tractors going up due to steel costs

[majorwager]

How do American tariffs effect products made overseas. ???

The surcharge is on raw products, not finished goods.

Seems some members prefer inexpensive foreign materials that the can purchase with their unemployment check !!!

EDIT: The vast majority of Sub-60 hp tractors in the US are produced in japan, S Korea, and some in India.
Mahindra however, sources much of the smaller tractors from Mitsubishi and TYM.

The Current U.S. Tariffs are not focused upon tractor production from those countries. The "finished products" controversy is now centered upon chinese manufacturing policies.

The trade issues are largely settled w/ the EU and S Korea and w/ Japan following behind quickly. Canada/Mexico not players in the tractor industry.

Bottom line, US trade policy is effecting domestic steel prices. But these 60 hp and under tractors are not produced here , and not part of focused trade disparity w/ US trade partners.

The goal of tariffs is to protect domestic US manufacturing employment. The U.S. Can't protect small tractor production jobs that do not exist in the US currently.

Please do not mix Deere in the discussion. They are assembling tractors in GA, with components sourced from around the entire world. Chassis, engine, transmissions, mostly japanese. They are building loaders in mexico, shipping to GA. for installation.

E series Deere assembled here, w/ components made in Deere Indian factories.

Back to this thread, US trade policy is not increasing your compact tractor cost.

 

[hodge]

How do American tariffs effect products made overseas. ???

The surcharge is on raw products, not finished goods.

Seems some members prefer inexpensive foreign materials that the can purchase with their unemployment check !!!

The tariffs are also on finished goods. This is a notice from Grizzly-

Beginning July 6th 2018, the United States Government implemented additional tariffs aimed at various products imported from China. We are now feeling the impact of these tariffs on many of our products.

25% Tariffs have been imposed on most machines and some accessories coming from China.
We have also been hit with numerous price increases for material costs that have gone up around the world and therefore our actual cost increase is much higher than the 25%.
Price increases on many of the affected products went into effect starting July 6th.
Any affected back ordered item, regardless of how long ago the order was placed, will be charged the new higher price as we are unable to absorb a 25% loss. This tariff is beyond our control and we are being forced to increase prices.
If and when the tariffs are rescinded, we will reduce prices on the affected items once stock brought in under the tariff is relieved.
Although products from Taiwan are not affected by the 25% tariffs, they are still affected by the material costs and those products will increase a modest amount, perhaps in the 5% range.

 

[majorwager]

Hodge,

Need proof that tariffs are affecting tractor prices from Japan or S Korea.!!!!!

The U.S. Issues w/ these countries center's around automobiles and certain appliances.

Since tractors are not impacted, dealers are subverting the truth w/ hype to increase profit margins.

Can folks read the thread title,???? which is bogus unto itself.

Folks can't wait to line up and paint themselves as victims. Whoa is poor little me !!

Let the Chinese economic machine dominate the manufacturing world and unemployment will be the leading US Industry.

Best advice, be informed or be silent.

If anyone is purchasing a Chinese tractor, you will find no sympathy here !!

SEE POST 21, w/ edit.

 

[Tractor Dell]

We have also been hit with numerous price increases for material costs that have gone up around the world

MajorWager, I think this is the part that you are missing. If you read any news/business source, all companies are stating their raw material prices are going up. The big one is steel prices. It is basic economics that if one country/company has low prices, other manufacturers have to keep their prices low to compete. If there is no longer a low-balling country/company, the other companies will raise their prices too. Sometimes it is to save from bankruptcy. Sometimes it to invest in their company. Sometimes it is to just increase their profits.

Saying "Best advice, be informed or be silent." probably isn't the way to address things. Especially what you mean by "informed" may be a lot different than what another person considers "informed".

 

[majorwager]

Tractor,
Clarifing. If China and the EU and S. Korea wish to produce and market low cost steel and alum, the US trade policy does NOT prevent them from doing so.

It means that they can NOT dump their products here. What other countries allow in to their markets is of no concern to the US.

: US trade policy only relates to products and goods we import and export.

If your point is that because these countries can no longer dump in the US market, and by default their production decreases, and their costs rise because of reduced production, that is really the aim of US policy. Level playing fields.

It is the US aim to strengthen The U.S. Economy, not that of trading partners. When an economy grows, all segments grow, wages increases, goods increase in cost, it is the capitalistic theory in practice. It is socialism that artificially stagnates growth and suppresses innovation and entrepreneurial spirit.

If you wish to export your job, fine, but the same might not sit well w/ your neighbor and his livelyhood.

And this whole discussion is not part of the intent of this website.

There are political sites for these discussions, where opinions may be battered about. There is bound to be disagreement, and the topic of such should be tractor related. Do not see an economics forum anywhere on this site.

 

[Tractor Dell]

And this whole discussion is not part of the intent of this website.

There are political sites for these discussions, where opinions may be battered about. There is bound to be disagreement, and the topic of such should be tractor related. Do not see an economics forum anywhere on this site.

I think this is the only part we can agree on, so let's just agree to disagree and move on.

 

[coachgeo]

all in all this has been a civil discussion with opposing views. Not sure any more factual information exist to post here.... nor do think there is really any different opposing points to put forth/debat...... so am closing the thread now