Earlier this year, a few heavy construction equipment manufacturers reported tariff refunds in their earnings reports. Now, more OEMs are disclosing what they’re getting back from the U.S. government after Trump’s IEEPA tariffs were ruled illegal.
How Did We Get Here?
The Supreme Court ruled in February that Trump lacked the jurisdiction to implement the tariffs he announced at the beginning of 2025 through the International Emergency Economic Powers Act. Though the IEEPA does allow the president to “regulate …importation,” SCOTUS found the law does not authorize the president to impose tariffs, which the court characterized as “unbounded in scope, amount and duration.”
Trump originally implemented a 25% duty on most Canadian and Mexican imports and a 10% duty on most Chinese imports related to an “influx of illegal drugs” from those countries, as well as a variety of fluctuating tariffs on numerous countries to address trade deficits.
U.S. businesses have been able to file for IEEPA refunds with U.S. Customs and Border Protection since April. According to a report from CNBC, the U.S. government has so far refunded $100 billion of the $166 billion it accumulated through IEEPA tariffs.
OEMs Get More in Tariff Refunds
In the most recent round of earnings reports, the following OEMs disclosed tariff refunds:
- Caterpillar — Reported $392 million in tariff refunds. During its earnings call, Caterpillar CFO Kyle Epley said the company expects about $600 million in third-quarter tariffs, with roughly 50% of that being incurred through its Construction Industries segment.
- Doosan Bobcat — Expects to receive $81 million back from tariffs paid when bringing in equipment and parts to the United States, as second-quarter revenue, according to Chosun Biz.
- John Deere — Recorded tariff refunds in the third quarter and first nine months of 2026 of $110 million and $382 million, respectively. Deere forecasts getting back $272 million.
- Komatsu — Forecasts a $180 million refund related to Trump's IEEPA tariffs.
- Kubota – Expects about $220 million in tariff refunds to help boost its operating profit for the full 2026 fiscal year.
Powered byEquipment World previously reported on the following tariff refunds in as of June 30:
- Manitowoc Company — $25 million (not yet received)
- Oshkosh Corp. (parent company of JLG) — $19.7 million (not yet received)
- Ford — $1.3 billion (expected to receive this sum as of March 31)
- General Motors — $500 million (booked as a favorable adjustment in its most recent earnings but claims to have paid $2.5 billion-$3.5 billion)
- Stellantis (parent company of Ram) — $455 million (recorded as an IEEPA tariff cost adjustment)
Current Tariff Situation
OEMs are still facing consistent tariff pressure outside of the refunded IEEPA tariffs.
One of the largest hurdles is Section 232 tariffs on steel, aluminum and copper. However, the Trump Administration issued a proclamation in June providing some agricultural and construction equipment manufacturers with temporary relief on Section 232 tariffs amid rising production costs.
That proclamation made the following adjustments until the end of 2027:
- A temporary tariff reduction from 25% to 15% on certain types of ag, construction and mobile industrial equipment identified in Annex I-C when imported from qualifying trade-deal countries.
- A lower threshold for products to qualify as being made “entirely” from U.S. steel, from 95% to 85%.
- 10% lower tariffs on products made in another country with at least 85% U.S. metals, measured by weight.
- Special provisions for USMCA products, including a 25% duty on only the non-U.S. content of the product.
OEMs are still facing China Section 301 tariffs ranging from 7.5% to 100%, which impact the component supply chain.
The most recent tariff challenge comes amid a trade war between the U.S. and Canada. Trump set a 50% tariff on $27.6 billion of Canadian goods, effective August 22, and in response, the Canadian government will impose 15%, 25% and 50% tariffs on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, effective September 8.
Impacted product categories under the upcoming Canadian tariffs include the following:
- Buckets, shovels, grabs and grips: 15%
- Bulldozer or angle-dozer blades: 15%
- Parts of boring or sinking machinery of subheading: 25%
- Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non-electric motor (saws and chains saws): 25%
- Tower cranes: 25%
When asked to comment on the IEEPA refunds and the current tariff situation in the U.S., Associated Equipment Distributors Senior Vice President of Government and External Affairs Daniel Fisher gave the following statement to Equipment World:
As anticipated, after the Supreme Court struck down the Trump administration’s ability to use IEEPA as a legal justification for broad, far-reaching tariffs, the president has turned to other authorities. Utilizing long-standing authorities, such as Section 232 and Section 301, the administration is set to reimplement broad tariffs that equal or exceed IEEPA levels. When you include the recently announced tariffs on Canadian goods using Section 338, it’s clear President Trump hasn’t been deterred following the IEEPA decision. And, we now have uncertainty surrounding USMCA (U.S.-Mexico-Canada Agreement), one of the most critical trade agreements for the equipment industry, and it’s a perfect storm of supply chain chaos that isn’t likely to improve in the near term and will only be more impactful as time goes on.
