Tariff uncertainty and rising costs weigh on heavy equipment dealers

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

The latest EquipmentWatch 2025 Dealer Insights report paints a cautious picture for heavy equipment sales in 2025. At the forefront of concerns is tariff uncertainty, cited by a clear majority of dealers as the biggest economic disruptor this year. In all, 70% of the 160 verified North American dealerships surveyed in April and May 2025 pointed to tariff instability as the chief pressure they face. Close behind, dealers named rising equipment costs, with 66.3% of respondents flagging it as a major concern. Financing challenges were noted by 49.1% of dealers, underscoring a broader sense of financial tightness in the market.

Across the board, sentiment in the dealer community was low. The majority described their 2025 equipment market outlook as “concerned” or “very concerned”, while only a minority—36%—reported themselves as cautiously optimistic about any improvement this year. A striking three-quarters of responding dealers expect that economic pressure will cause buyers to pause equipment purchases, a signal that replacement cycles may lengthen as buyers delay purchases and evaluate options more slowly.

Partei to the pause in buying, dealers anticipate a broader slowdown in equipment replacement cycles and expect longer equipment life spans on customer lots as a result. When buyers do pause, the effect is twofold: high costs are delaying purchases for some customers (reported by 38% of responding dealers), and inventory is tying up capital for others (reported by 30.1%). These dynamics help explain the overall sense of caution surrounding 2025.

Technology stands out as a potential cushion for some dealers. The survey found notable interest in advanced tools, with AI-driven pricing and valuation tools drawing the attention of 45% of respondents. Other technologies of interest include CRM (customer relationship management) software at 34.4% and automated lead generation tools at 33.7%. These technology trends point to a shift toward more data-driven decisions and more proactive sales efforts even as the market slows.

The report notes a broader narrative around what these pressures mean for the market. Dealers expect that tariff-related profit impacts are material enough to cause adjustments to annual outlooks, a pattern that has implications for pricing, inventory management, and investment in new technologies. The data come from EquipmentWatch, a long-standing provider serving contractors, manufacturers, dealers, rental companies, lenders, insurers and government agencies in heavy civil construction for more than six decades. EquipmentWatch also owns The Rental Rate Blue Book, a reference used by many in the field.

The 2025 Dealer Insights report is published with data from 160 verified North American dealerships, collected in April–May 2025. The report’s authors and editors acknowledge the broader context of the industry’s health and outlook, while presenting a focused snapshot of dealer sentiment and priorities. The findings come with a note on access: the full report is available as a free download. The content was prepared with input from researchers in Bengaluru and edited for clarity and consistency, following established reporting standards.

Looking beyond the numbers, the report also references several macro trends that could shape the near-term market: persistent tariff risk, ongoing cost pressures across equipment categories, and the slow pace at which buyers appear ready to commit to new purchases. Taken together, these elements form a cautious to guarded outlook for 2025, with pockets of opportunity found in smarter pricing, better customer relationship management, and improved lead generation through technology.

Specific notes on the study’s scope and background are included to help readers interpret the figures. The survey’s sample size and timing—160 dealers in North America during April and May 2025—provide a snapshot rather than a full year forecast. The study’s framing emphasizes the reality that buyers may pause while sellers recalibrate, with the potential for shifts in inventory levels and selling cycles in the months ahead.

In context, Deere, a major player in the equipment market, reported a tariff-driven profit hit and tightened its annual outlook based on tariff volatility and related cost pressures. That development underscores a broader industry pattern: tariff dynamics are not just a political matter but an economic force shaping profitability and planning for manufacturers and dealers alike.

For readers seeking context, EquipmentWatch has long served the heavy civil construction sector and related fields. The organization’s work covers dealers, rental companies, manufacturers and lenders, providing market data and valuation tools that can influence pricing and buying decisions. The free download option for the full 2025 Dealer Insights report allows stakeholders to review the underlying data, methodology and commentary that underlie the headline numbers above.

Reporting on the study credits Nathan Gomes in Bengaluru for the depth of coverage and notes that editorial oversight was provided by Shinjini Ganguli. The report aligns with the broader standards that guide business reporting in markets around the world, focusing on accuracy, clarity and usefulness for professionals navigating today’s construction equipment market.