Note: Policy and pricing inputs change frequently. The observations below reflect recent trends and my on-the-ground experience; check with us for current numbers.

Equipment prices keep climbing at our Astoria dealership, and steel tariffs are a big reason why. The 2025 changes aren’t just policy talk—they’re showing up in real numbers when you shop for tractors and implements.

What Section 232 Tariffs Mean for Tractor & Implement Pricing (2025)

Here’s the part that shows up on quotes: Steel and aluminum tariffs have increased significantly through 2025. Industry guidance indicates tariffs were reinstated in early 2025 and doubled by mid-year, affecting the cost of imported metal components.

The government has expanded what’s covered to include more equipment categories and parts. For compact tractors and implements—which contain substantial steel and aluminum—these tariffs add cost at every level of the supply chain.

Here’s what most folks miss: these aren’t just hitting imported tractors. They’re affecting every brand because the raw materials come from overseas, even when final assembly happens here.

The Real Impact on Compact Tractors

Nearly every compact tractor brand gets hit by these tariffs. KIOTI tractors come from South Korea with final assembly in North Carolina. LS compacts are manufactured in South Korea. Even brands you might think are “American-made” use imported steel and aluminum.

Don’t buy too small to “save” in a rising market. We’ve watched our cost sheets climb steadily. Major manufacturers have publicly noted substantial tariff-related cost pressure—some reporting hundreds of millions in additional costs this year.

On compact builds we’ve priced since summer, steel-heavy components have pushed wholesale costs up, and we’ve seen retail prices move roughly a bracket higher on many models. The exact amount varies by size and configuration, but the trend is consistent across the board.

Why “Made in America” Doesn’t Solve Everything

We get asked constantly if there’s a way around tariffs by buying American-made equipment. The short answer is no—not really. Even Caterpillar and John Deere use imported steel and aluminum. The raw materials come from overseas, get processed here, then become equipment.

True 100% American content doesn’t exist in compact tractors. The supply chain runs global, and that’s been the case for decades. Tariffs recognize this reality—they target the metal content, not where final assembly happens.

Will Waiting Save You Money in Oregon?

First, don’t panic buy. We’ve seen fewer mid-month price changes since June, but freight and factory programs still move around. Dealers like us are working with manufacturers to soften the blow where we can.

Second, consider your timing. If you’ve been thinking about upgrading your tractor, waiting another six months might not save you money. These tariff levels could stick around, and other costs keep rising too—fuel, labor, transportation.

Finance to fit your cash flow, not just sticker price. A payment plan that fits your cash flow matters more than the total price when you’re buying equipment that’ll work for 15-20 years. We’re seeing more customers go this route.

Why Pricing Varies Between In-Stock and Incoming Units

Here’s something most buyers don’t realize: not all tractors on dealer lots right now cost the same, even if they’re the same model.

Equipment that arrived before the tariff increases doesn’t carry those additional costs. If we have a KIOTI CX2510 that’s been sitting here since spring, our cost on that unit reflects the old tariff rates. But the same model shipping from the factory today has higher landed costs built in.

That’s why you might see price differences between dealers, or even between two identical tractors at the same dealership. One came in before the tariff changes; the other after.

If you’re shopping now, it’s worth asking: “Is this unit current inventory or incoming?” In-stock equipment often represents better value, but selection is limited to what’s physically here. Ordering exactly what you want means paying current costs—which include the latest tariff impacts.

The flip side: waiting for a specific configuration could mean higher costs if tariffs increase again, or potentially lower costs if they’re reduced. Nobody knows. That’s why I generally recommend buying what’s available if it fits your needs, rather than gambling on future policy changes.

Used Market Reality

When equipment prices climb, more buyers turn to used tractors. That’s understandable, but it creates its own challenges. Good used compacts are getting harder to find, and sellers know the market favors them right now.

If you’re considering used equipment, expect to pay closer to retail than you would have two years ago. And budget time for condition checks—skipping that step to save a few hundred can cost you thousands later.

What We Can and Can’t Promise on Pricing Right Now

We’ve had customers asking about price locks and delivery timelines. Here’s the honest truth: with tariffs and freight costs changing as often as they do, we can’t lock prices months out with any accuracy. What we quote today reflects current costs, but those costs could shift next week.

Ask us for a written quote with a validity window; we’ll also discuss alternatives in stock if programs shift. Manufacturers are dealing with supply chain challenges, and nobody wants to get caught holding inventory if tariffs change again. We work with what we know now and adjust as things change.

The good news is that equipment quality hasn’t suffered. KIOTI and LS tractors still come with the same reliability you expect. You’re paying more, but you’re getting the same machine.

Looking Ahead

Tariff policy can change, but we’re planning like current levels will stick around. That means continuing to work with customers on financing, trade-ins, and timing purchases to fit budgets.

My advice hasn’t changed much: buy the right-sized equipment for your operation, not the minimum that might work. In our hills and short weather windows, a slightly heavier, higher-HP compact pays you back in usable days.

A tractor that’s slightly bigger than you think you need will handle more tasks and hold value better, even if it costs more upfront. The steel and aluminum in that equipment will keep working for decades. Tariffs are a cost of doing business right now, but they don’t change whether quality equipment makes sense for your operation.

If you want, I’ll price two builds—one that fits now and one that covers the “next job”—so you can compare monthly payments vs. waiting. Give us a call to talk through your specific situation.

Frequently Asked Questions

Are compact tractors affected by the steel tariffs?

Yes. Section 232 tariffs apply to steel and aluminum imports, and compact tractors contain substantial amounts of both. In mid-August 2025, the government added 407 more product categories to the tariff list, including many ag and construction machinery subheadings. The tariffs are assessed on the value of the steel and aluminum content in the equipment.

Do tariffs apply to the entire tractor price or just the metal?

For covered products, the duty is assessed on the value of the steel or aluminum content—not the whole product price. However, since steel and aluminum make up a significant portion of a tractor’s manufacturing cost (frame, loader arms, axles, hydraulic components, etc.), the impact on final retail price is substantial.

When exactly did tariffs increase in 2025?

Section 232 tariffs were reinstated at 25% on February 10, 2025, took effect March 12, 2025, then doubled to 50% at 12:01 a.m. ET on June 4, 2025. In August, the government expanded the list of covered derivative products by 407 categories.

How much are tariffs actually costing manufacturers?

John Deere reported nearly $200 million in tariff costs in their third quarter alone and expects close to $600 million for the full year. Those costs get passed through the supply chain—from manufacturers to dealers to buyers.

Should I wait to buy hoping prices will drop?

Nobody knows if tariffs will be reduced, increased, or stay the same. What we do know: freight costs, labor, and other inputs keep rising regardless. Buy your second tractor first—size for what you’ll need, not just what you need today. A payment plan that fits your cash flow often matters more than waiting for price drops that may never come.

What about buying used equipment instead?

Used compact tractors have gotten harder to find and more expensive. Good used units are selling closer to retail than they did two years ago because buyers are looking for alternatives to new equipment pricing. If you go used, budget serious time and money for a thorough inspection—a cheap tractor with hidden problems will cost you more than paying current market price for a good one.

Why do I see different prices for the same tractor model?

Equipment that arrived at dealerships before the tariff increases costs less than identical units shipping now. A KIOTI CX2510 that’s been in stock since spring reflects old tariff rates; the same model arriving this month reflects current 50% tariffs on its metal content. Always ask: “Is this current inventory or incoming stock?”