Outdoor power equipment is already impacted by the current trade war. Chainsaws, snow blowers and anything with a rotary cutting deck from the USA were already slated for 25% duties. There has been a 30 day pause, for now. Just the threat of big tariffs is already creating changes. Nobody knows where this is headed. All we know is where we are at this moment.

Currently, most manufacturers, their distributors and dealers in Canada, have existing inventory for many products. These would have been received prior to duties. Some items like snow blowers are in short supply due to being late in the season. Production of summer products (tractors, zero turns etc) are usually in full swing right now. Most of these are US built. Inventory in Canada would start to build up as we get closer to the cutting season. Manufacturers would normally start shipping to the Southern US markets first since their season starts much earlier. Manufacturers and their distributors are doing their best to address the current uncertainty but they have limited options.

If tariffs are applied it will cause problems for the coming season. Tariffs are imposed or repealed with short notice. There is no way anyone in the sales channel can pay a 25% duty and then eat it if the tariffs are removed afterwards. Our guess is that most or all orders are going to be put on hold if subject to tariffs. If the tariffs are removed then the orders get released. If tariffs are going to last longer, orders will be cancelled. If this goes on long term then prices are going to skyrocket.

Tractors, zero turns and snow blowers are almost all built in the US, regardless of where the parent company is. Global production will help with some products. For example, Husqvarna pro chainsaws are built in Sweden. Automowers are built in England. Many battery products are built in China since they control most of the raw materials and have the battery manufacturing infrastructure. China builds a lot of outdoor power equipment but the majority of it is low quality with little or no support after the sale. There are some exceptions and they will likely do well if the trade war lasts for any length of time. The Japanese brands are high quality. Many of these companies have their factories that supply the North American market located in the US so tariffs are going to apply. We used to build outdoor power equipment in Canada but those factories left during the early 90’s with the original Free Trade Agreement.

We have been able to pull some orders forward to beat tariffs. Our order of Ariens snow blowers for next winter is already in transit and will start to arrive next week. We are trying to do the same with summer products but many of these are still in production. The other side of tariffs will be rising prices due to input costs. Steel and aluminum prices will jump so this will cause a rise in component costs. The final product will be more expensive to build. Couple that with changes in our dollar and prices will have to rise.

If you need equipment in the near future, it may be wise to see what is available now at pre tariff pricing. It may also all blow over in hours and be a non issue. Who knows??? It is all up to the orange guy. This is strictly an informational post to provide some insight into how things stand right now. STAY TUNED!