Facing the Trump administration’s increased tariffs on Chinese goods—some exceeding 100% (Note: On May 12, news emerged that tariff policies in both countries have been adjusted)—Chinese construction machinery manufacturers and dealers are actively responding to mitigate the impact on the industry.
Recent tariff hikes imposed by the Trump administration have introduced uncertainty in the construction sector, particularly concerning equipment manufacturing and delivery. Some manufacturers (e.g., JCB) have announced plans to expand production in the U.S. in response to the Trump administration’s tariffs on multiple countries—many of which have been paused for 90 days due to trade negotiations. However, Chinese equipment manufacturers and dealers, who are among the hardest hit in the short term, say they are not panicking.
Dealers: Prioritizing Inventory Liquidation
Troy Tate, president of Chicago Machinery Co., a single-location Sany dealer in Illinois, said Sany has informed him of impending price adjustments. But his immediate priority is not procuring new equipment from the manufacturer but selling existing inventory. “We have plenty of stock to sell before needing to order new equipment,” Tate said. “Hopefully, by then, the situation will have stabilized, and the impact of tariffs will have lessened.” Over the past 12 months, the dealership’s equipment intake has exceeded outbound shipments, which Tate attributes to high interest rates. He noted that other Sany dealers share a similar mindset: since existing inventory is unaffected by price hikes, concerns are limited.
Manufacturers: Stabilizing Supply Chains and Expanding Globally
Andrew Ryan, president of LiuGong North America, said the company has taken steps to cushion the impact of tariff-induced price increases on new equipment. He mentioned that LiuGong maintains regular communication with dealers, updating them on supply chain adjustments and emphasizing that service and rental revenue will be key focus areas in high-tariff markets. “LiuGong is committed to long-term growth in North America,” Ryan said. “Dealers are our core strategic partners, and we fully support their success. We communicate with them regularly to ensure the continuity of parts and equipment supply.”
“Such rapid and large-scale changes are undoubtedly disruptive, but we are working with dealers to ensure business continuity and deliver sustainable value to customers. As the market and our company adapt to these dynamics, expanding service-related rental and repair businesses will be critical.”
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