A recent wave of tariff increases from President Trump on Chinese goods – which are now over 100% – has cast a wave of uncertainty over the construction industry, particularly where it could impact equipment manufacturing and delivery.
Some manufacturers, such as JCB, have already announced intentions to expand production in the U.S. in response to Trump's tariffs on other countries, many of which have been paused for 90 days as trade agreements are made.
However, in the short term, those most affected – manufacturers and dealers of Chinese equipment – say they aren’t panicking.
Troy Tate, president of single-store Illinois Sany dealer Chicago Machinery Co., says he’s been warned by Sany that price adjustments are on the way. However, purchasing more equipment from his mainline OEM isn’t his top priority: It’s selling what he already has.
“We've got plenty of current inventory to sell off before we have to buy more inventory,” he says. “So hopefully by that point, everything will be all settled down, and that won't have as much of an effect.”
He says in the last 12 months, the dealership has seen more equipment coming in than going out, which he attributes to high interest rates. According to Tate, the general mood among other Sany dealers is the same: The current inventory is safe from price increases, so worry is minimal.
On the manufacturing side, Andrew Ryan, president of LiuGong North America, says the company has taken steps to minimize price increases on new equipment related to tariffs.
Concerning its dealers, Ryan says, the company has been in regular contact with them on LiuGong’s plans for its supply chain. He points to an emphasis on service and rental revenue in this tariff-heavy market.
“LiuGong is committed to long-term growth in North America,” said Ryan. “Our dealer partnerships are a critical part of our strategy, and we are committed to their success. We are in regular contact with our dealers to update them on plans to ensure continuity in parts and equipment supply.
“There is no doubt that rapid change at this scale is disruptive, but we are collaborating with our dealers to ensure the success of our joint business and focus on delivering value to our mutual customers is sustainable. Increasing service-related rental and repair business will be a critical component as the market and our company work to adjust to the changing market dynamics.”
Ryan added that LiuGong has focused on expanding its manufacturing footprint beyond China in the last decade and is developing regional supply chains with suppliers including Cummins, ZF and Rexroth. Additionally, it is assessing the feasibility of production in the U.S.
“We have been manufacturing in India for 12 years and are in the advanced stages of develop a manufacturing facility in Indonesia and are in the process of feasibility studies in the Americas,” Ryan said. “This program is tied to our growth outside of China and not specifically to recent changes in U.S. trade policy, but it will help us to manage the impacts of those changes while ensuring strict compliance with all applicable trade regulations.”
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