During a Wednesday morning press conference at the White House, announcing a 90-day reduction in all tariffs (other than for China) from their stated highs to an across the board 10 percent, United States Secretary of the Treasury Scott Bessent was specifically asked if that applied to Canada and Mexico as well.
His answer was a definitive “yes.”
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A couple of hours later, the White House announced that was not correct, and all existing tariffs on Canada and Mexico will remain unchanged and in place. But most of the exact details surrounding the so-called “pause” in the U.S. tariffs remained murky.
This latest pause and reduction follows on a string of similar proclamations from the White House over the past three months. It’s the kind of yes-no-maybe approach to international trade that is something seemingly more suited to an old Marx Brothers movie than the strategic actions of a competent administration.
While that temporary lowering of tariffs on some countries was welcomed by the stock market, which saw significant gains following the announcement, it only heightens the uncertainty surrounding international trade and business in the U.S.
As a result, ag equipment brands who have to ship high-value machines across borders have a lot to lose if a major shipment gets caught in the midst of a policy change.
So far, however, only one manufacturer, Agco, has publicly stated its intention to pause equipment deliveries into the U.S. It manufactures some Fendt and Massey-Ferguson branded equipment in Germany and France, among other locations, for the North American market.
“The U.S. and reciprocal tariff landscape remains very fluid,” Agco stated in a press release, “While we assess potential impacts, finished equipment from non-U.S. production facilities intended for the U.S. will be temporarily held at their current locations outside the U.S. The shipment of parts into or from the U.S. is not currently impacted by this action.”
The company said it is currently evaluating the best way to continue delivery of machines, particularly those made in Europe, to farmers globally.
While Canada has imposed retaliatory tariffs on serval imports from the U.S., they are unlikely to cause any disruption to ag equipment imports from American manufacturing plants, at least not yet. The only ag-related machines on the current list of products subject to Canadian tariffs is mowers.
“Agco continues to ship finished products from the U.S. to other countries where there are currently no applicable tariffs,” the company statement read. “We expect to provide an update on the potential financial impact of tariffs at our next earnings call in early May.”
