Tariffs Announced by Trump Expected to Drive Up Construction Equipment Costs
A 10% baseline tariff and higher duties on Chinese and European goods—including a 25% tariff on imported work vehicles—could reshape the industry’s cost structure, procurement strategies and fleet planning.
On April 2, President Donald Trump announced a new round of tariffs, including a 10% baseline duty on all imported goods, along with reciprocal tariffs of 34% on Chinese products and 20% on European imports. These trade measures are expected to create both immediate and long-term impacts on the construction industry.
These new policies also include a 25% tariff on imported automobiles, which encompasses commercial trucks, utility vehicles, and specialty construction vehicles critical to many contractors and fleet operators.
While these policies aim to correct trade imbalances and protect U.S. manufacturing, they are introducing new cost pressures into an already volatile market. Contractors, rental companies, and equipment dealers may soon face higher equipment prices, procurement delays and tighter margins.
The reciprocal tariffs are expected to hit imported machinery, electronics and hydraulic components, many of which are crucial in manufacturing and servicing construction equipment. Although steel, aluminum, lumber, and copper may be exempt from these new reciprocal tariffs, they have already been subject to a 25% import duty since March 12, 2025, which continues to drive up material costs.
Multiple sectors across the industry will feel the effects, especially those involving equipment acquisition, fleet management and material procurement. The 25% tariff on imported work vehicles may drive up acquisition costs, making it more expensive to purchase or lease new machines. This includes cranes, mobile elevating work platforms (MEWPs), telehandlers, compact machines and service trucks—many of which are either imported or built with foreign components.
The reciprocal tariffs can also lead to increased maintenance costs, delayed repair times or more costly or limited inventory for contractors and dealers alike. To stay competitive, contractors may need to revise project budgets and rebalance bidding strategies to reflect these rising equipment costs.
In the short term, the equipment rental market may see a surge in demand as capital equipment costs are expected to rise. However, in the long run, as prices increase and a new unit requires a higher acquisition cost, rental companies may have to adjust rates.
To prepare for the cost increases and mitigate future risks, contractors, dealers, and fleet managers should audit their fleets, plan by securing orders or negotiating leases, strengthen supplier relations and keep watch on the aftermarket for the value of used equipment. As these tariffs take effect, construction professionals should stay flexible with equipment procurement, fleet planning, and rental strategies to manage rising costs and supply chain challenges.
