Locksmith Services
Sourcing Guide & Market Intelligence

Tariffs to negatively impact the building and construction machinery sector

• The United States implemented a blanket tariff of 10.0% on all US imports of foreign goods, as well as a cumulative 145.0% tariff on China and a 25.0% tariff on goods from Mexico and Canada not compliant with the U.S.-Mexico-Canada Agreement. Other large sources for imports of building and construction machinery, like Japan, South Korea, and Germany, may face higher tariffs; as of April 9, a 90-day pause on reciprocal tariffs is in place.
• The increase in the average tariff rate on building and construction machinery imported from tariff-impacted countries will add to the price of imports, which are typically passed on to buyers in the form of higher prices. According to The Budget Lab at Yale, the additional tariffs on imports will increase overall prices for machinery and equipment from 3.1% to 6.4%.
• According to a survey from Construction Equipment Magazine in April 2025, around half of the respondents reported that the higher tariffs would increase operating costs by up to 15.0%, and more than half said they plan to pass those increases along to buyers. The United States implemented a full 25.0% tariff on steel and raised the aluminum tariff to 25.0%, which will increase the cost of raw materials, leading to higher costs for manufactured building and construction machinery.
• As many building and construction machinery brands source parts and components such as steel, engines, and electronics from foreign countries, higher tariff rates will put upward pressure on prices and lead to higher rental rates as manufacturers and dealers pass on costs. In addition, suppliers that source parts from tariff-affected regions may see supply chain disruptions as they seek alternative suppliers to mitigate tariff impacts.
• Japan, one of the largest sources of building and construction machinery imports, will now face a flat 10.0% tariff, negatively impacting US buyers. As a result, major suppliers in these markets, such as Hitachi, Komatsu, Kubota, Sumitomo, Kawasaki, and Toyota, will face obstacles to competition in the US market.

United States announces additional tariffs on China

• In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
• The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
• In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
• Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.

United States postpones plans for sweeping tariffs on Canada and Mexico

• In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
• Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
• The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
• Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.