Tariff uncertainty and rising costs weigh on heavy equipment dealers

North America, August 16, 2025

News Summary

A survey of 160 verified North American dealerships finds tariff uncertainty is the top concern for dealers, followed by rising equipment costs and tighter financing. Most dealers report a cautious or worried market outlook, with many expecting buyers to pause purchases, lengthening replacement cycles and slowing inventory turnover. Dealers say excess inventory and high prices are tying up customer capital. In response, many are exploring technology solutions—especially AI-driven pricing and valuation tools, CRM systems and automated lead generation—to protect margins, move inventory and advise customers on extending equipment life.

Tariff uncertainty tops EquipmentWatch 2025 Dealer Insights; Deere reports tariff-driven profit hit and tightens annual outlook

The latest EquipmentWatch 2025 Dealer Insights survey highlights tariff risk as the dominant concern for heavy equipment dealers in 2025, with rising costs and financing challenges close behind. The survey gathered responses from 160 verified North American dealerships and was conducted in April through May 2025. In a clear signal of pressure across the market, dealers report tariff uncertainty as the leading economic disruptor for the year, followed by rising equipment costs and financing challenges.

In a related note tied to the same environment, Deere disclosed a tariff-driven profit hit and responded by tightening its annual outlook, underscoring how tariff tensions ripple through manufacturers, dealers and buyers alike. The broader market picture remains cautious, with sentiment described as low across the dealer community.

What the data reveals at a glance

Key numbers from the survey indicate that tariff instability dominates dealer concerns. A striking 70% of respondents labeled tariff uncertainty as the biggest economic disruptor for 2025. Following closely, 66.3% point to rising equipment costs as a major issue, and 49.1% cite financing challenges as a significant hurdle. The survey included a diverse mix of dealers and captured a broad sense of the market tone, with the overall outlook described as concerned or very concerned by the majority.

Only 36% of dealers describe themselves as cautiously optimistic about the 2025 equipment market. Nearly three-quarters of responding dealers believe economic pressure will cause buyers to pause equipment purchases, a signal that purchase decisions could be delayed and equipment replacement cycles may slow.

Buyer behavior and equipment life

With purchasers pausing more often, dealers expect longer equipment life spans on customer lots as a direct result of paused purchases. Among the dealers who feel the effects of equipment surpluses, 38% said customers were delaying purchases due to high costs, while 30.1% indicated that excess inventory tied up customer capital and prevented timely buys.

Technology on the radar

Technology adoption remains a notable area of interest for dealers looking for competitive edge. AI-driven pricing and valuation tools draw particular interest from 45% of respondents, followed by CRM (customer relationship management) software at 34.4% and automated lead generation tools at 33.7%. These tools are seen as potential ways to weather a cautious market and keep customers engaged even as buying pauses occur.

Background and scope

The EquipmentWatch insights come from 160 verified North American dealerships, with the survey conducted in April-May 2025. EquipmentWatch has served the heavy civil construction sector for more than six decades and owns The Rental Rate Blue Book. The organization is part of a larger family that includes Equipment World, with reporting on this topic conducted by staff editing for clarity and accuracy. The content aligns with industry standards and trust principles that govern business news reporting.

Implications for dealers and buyers

In this environment, dealers are watching for shifts in purchasing, inventory positioning, and cost management. Tariff uncertainty creates a pressure cooker for pricing and financing, influencing both dealer profitability and buyer decisions. The combination of higher costs and longer replacement cycles could extend the time frames in which equipment is renewed, affecting rental markets, project timelines and overall construction activity. The interest in AI pricing and CRM tools suggests dealers are looking for practical ways to optimize pricing, track customer needs, and sustain relationships even as demand cools.

Frequently asked questions

What is the main finding of the EquipmentWatch 2025 Dealer Insights?

The survey identifies tariff uncertainty as the leading economic disruptor for dealers in 2025, with rising equipment costs and financing challenges also prominent, and overall sentiment trend toward concern.

What share of dealers cited tariff uncertainty as the biggest disruptor?

70% of respondents labeled tariff uncertainty as the biggest disruptor for 2025.

How are dealers expected to view the market in 2025?

Most dealers described their outlook as concerned or very concerned, with only about 36% cautious optimistic.

What buyer behaviors are anticipated as a result of the current conditions?

Dealers expect buyers to pause purchases, slow equipment replacement cycles, and keep more equipment on lots longer, affecting turnover and cash flow.

Which technologies are dealers most interested in?

AI-driven pricing and valuation tools lead at 45%, followed by CRM software at 34.4% and automated lead generation tools at 33.7%.

Key features of the report

Key Feature	Details
Scope	160 verified North American heavy equipment dealerships; survey conducted in April–May 2025
Top concern	Tariff uncertainty cited by 70% as the biggest disruptor for 2025
Costs	Rising equipment costs cited by 66.3%
Financing	Financing challenges cited by 49.1%
Market sentiment	Overall sentiment described as low; majority are concerned or very concerned
Outlook optimism	Only 36% described themselves as cautiously optimistic
Buyer behavior	Nearly 75% expect buyers to pause purchases; slower replacement cycles
Inventory impact	30.1% report excess inventory tying up customer capital
High-cost delays	38% cite high costs delaying purchases
Technology interest	AI pricing/valuation 45%; CRM 34.4%; automated lead generation 33.7%

Deeper Dive: News & Info About This Topic

Additional Resources

• Reuters: Deere quarterly profit falls as US tariffs hit farm equipment margins
• Wikipedia: John Deere
• Equipment Finance News: Equipment dealers face mounting tariff concerns
• Google Search: equipment dealers tariffs 2025
• Colorado Politics: U.S. producer prices surge in July as tariffs push costs higher
• Google Scholar: producer prices tariffs 2025
• Tom’s Hardware: EU fab tool makers get reprieve in EU–U.S. tariffs deal
• Encyclopedia Britannica: semiconductor equipment tariffs
• The Cattle Site: US–China extend tariff truce
• Google News: US China tariff truce 2025