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.

February 2026 Update: The Supreme Court struck down IEEPA-based tariffs on February 20, 2026 in a 6-3 ruling. But the Section 232 steel and aluminum tariffs—the ones that directly affect tractor and implement pricing—were imposed under a different law and remain fully in effect at 50%. If you're hoping tractor prices are about to drop, I wish I had better news. Read on.

Trade policy is moving fast. The administration has signaled it may reimpose struck-down tariffs under different statutes, so this situation could change at any time. We'll update this article as things develop.

Equipment prices keep climbing at our Astoria dealership, and steel tariffs are a big reason why. The 2025 tariff increases aren't just policy talk—they're showing up in real numbers when you shop for tractors and implements. And despite what you may have heard about the Supreme Court decision, the tariffs hitting your equipment costs aren't going anywhere.

What the Supreme Court Ruling Means (and Doesn't Mean) for Equipment Prices

Let's clear this up first, because we're already getting calls about it.

On February 20, 2026, the Supreme Court ruled 6-3 that President Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on imports. That ruling eliminated the "reciprocal" tariffs and country-specific duties imposed under IEEPA—the ones that hit broad categories of consumer goods.

But the steel and aluminum tariffs that affect tractor pricing are a completely different animal. Those are Section 232 tariffs, imposed under the Trade Expansion Act of 1962. The Supreme Court ruling doesn't touch them. Section 232 was specifically designed for tariffs—unlike IEEPA, which never mentions the word "tariff." That's why the court struck down one and left the other standing.

Bottom line: if you're buying a compact tractor, a loader, implements, or any steel-heavy equipment, you're still paying Section 232 rates. The 50% tariff on steel and aluminum content is still in effect as of today.

Will tractor prices go down because of the ruling? No. The tariffs that were struck down didn't apply to the steel and aluminum content in equipment—Section 232 took priority over IEEPA for metal content. So the cost inputs haven't changed.

And here's the part nobody wants to hear: even the IEEPA relief may be temporary. The administration has already signaled it plans to reimpose those struck-down tariffs using other legal authorities—Section 301, Section 122, or new Section 232 investigations. Those statutes come with more constraints (Section 122, for example, limits tariffs to 15% for 150 days), but the intent is clear. Today's ruling may have changed how tariffs get imposed, not whether they get imposed.

What Section 232 Tariffs Mean for Tractor & Implement Pricing

Here's the part that shows up on quotes: Steel and aluminum tariffs increased significantly through 2025 and remain at those levels. Tariffs were reinstated at 25% in early 2025 and doubled to 50% by June. In August 2025, the government expanded the list of covered products by 407 categories, including many ag and construction machinery subheadings.

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. John Deere reported nearly $200 million in tariff costs in their third quarter of 2025 alone, with close to $600 million expected for the full year. Those costs get passed through the supply chain—from manufacturers to dealers to buyers.

On compact builds we've priced since summer 2025, 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. Section 232 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—and don't assume the Supreme Court ruling changes your calculus. The IEEPA tariffs that were struck down didn't apply to steel and aluminum content in the first place (Section 232 tariffs took priority over IEEPA for metal content). So the ruling doesn't reduce your equipment costs.

Second, consider your timing. If you've been thinking about upgrading your tractor, waiting another six months probably won't save you money. Section 232 tariffs have strong legal footing—they were imposed under a law that specifically authorizes tariffs after a Commerce Department investigation. They're not going anywhere soon, 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 early 2025, 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 full 50% Section 232 tariffs on metal content.

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 or three 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: even with the IEEPA tariffs struck down, Section 232 rates on steel and aluminum remain at 50%, and freight costs continue to move. We can't lock prices months out with any accuracy. What we quote today reflects current costs, but those costs could shift.

Ask us for a written quote with a validity window; we'll also discuss alternatives in stock if programs shift. Manufacturers are dealing with ongoing cost pressure, and nobody wants to get caught holding inventory if policy changes 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

The Supreme Court clarified one thing: IEEPA isn't a blank check for tariffs. But Section 232—the law behind steel and aluminum tariffs—has been upheld and used across multiple administrations since 2018. These tariffs have strong legal standing, and we're planning like current levels will stick around.

Here's what could change—and what probably won't. The administration has signaled it will try to replace the struck-down IEEPA tariffs using other authorities like Section 301 or Section 122. Those statutes come with more constraints and require investigations or have time limits, so it won't happen overnight. But the intent to maintain tariffs on imports is clear. We could see new tariffs under different legal authority within months.

For equipment buyers, the practical reality is this: the tariffs directly affecting your tractor prices (Section 232 on steel and aluminum at 50%) survived the ruling. And even if broader trade policy shifts, the trend for equipment costs has been one direction for years. We're not planning for lower prices, and I'd suggest you don't either.

Everything in this article is based on what we know today. Trade policy has moved faster in the last year than at any point in modern history, and it could shift again. We'll update this page as the situation develops.

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

Did the Supreme Court ruling eliminate tariffs on tractors?

No. The February 2026 Supreme Court ruling struck down tariffs imposed under IEEPA—the "reciprocal" and country-specific tariffs. The Section 232 steel and aluminum tariffs that directly affect tractor and implement pricing were imposed under a different law (the Trade Expansion Act of 1962) and remain fully in effect at 50%. Your equipment costs haven't changed because of this ruling.

Are compact tractors affected by the steel tariffs?

Yes. Section 232 tariffs apply to steel and aluminum imports at 50%, and compact tractors contain substantial amounts of both. In 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.

What's the difference between IEEPA tariffs and Section 232 tariffs?

IEEPA tariffs were broad, country-specific duties imposed under the International Emergency Economic Powers Act—a 1977 law that doesn't mention tariffs. The Supreme Court ruled these illegal. Section 232 tariffs target specific materials (steel, aluminum, copper) under a 1962 law that explicitly authorizes tariffs after a national security investigation. Section 232 tariffs remain in full effect and have been used by multiple presidents since 2018.

When exactly did steel tariffs increase in 2025?

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

Will importers get refunds on equipment tariffs?

The Supreme Court ruling may lead to refunds of IEEPA tariffs—potentially $129-175 billion total across all industries. However, tariffs on the steel and aluminum content of equipment were collected under Section 232, not IEEPA, so those are not eligible for refunds. The refund process for IEEPA tariffs is expected to be complex and could take considerable time.

How much are tariffs actually costing manufacturers?

John Deere reported nearly $200 million in tariff costs in their third quarter of 2025 alone and expected close to $600 million for the full year. Those costs get passed through the supply chain—from manufacturers to dealers to buyers. With Section 232 rates still at 50%, this cost pressure continues into 2026.

Should I wait to buy hoping prices will drop?

The Supreme Court ruling didn't change the tariffs affecting equipment. Section 232 steel and aluminum tariffs remain at 50% with strong legal standing. And even the IEEPA tariffs that were struck down may be reimposed under different legal authorities—the administration has made that clear. 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 or three 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 early 2025 reflects old tariff rates; the same model arriving today reflects current 50% tariffs on its metal content. Always ask: "Is this current inventory or incoming stock?"