Komatsu confirmed 4% NA price hike with more coming. In-stock dealer units purchased before latest tariff rounds may carry older cost basis. Ask for manufacturing date and import docs before negotiating.
Caterpillar just told investors it expects $2.6 billion in tariff costs for 2026. Komatsu raised North American prices 4% in August 2025 and confirmed more hikes are coming. John Deere is staring at a $1.2 billion tariff bill on its fiscal 2026 equipment lines, with Construction & Forestry taking the heaviest hit.
If you’re buying or leasing heavy equipment this year, those numbers translate directly into what you pay at the dealer.
How Much More You’re Paying, by OEM
Here’s how the three largest equipment OEMs stack up on tariff exposure and their response:
| OEM | 2026 Tariff Exposure | Price Response | Key Detail |
|---|---|---|---|
| Caterpillar | $2.6B (up from $1.8B in 2025) | Selective increases across lines | AI/power equipment demand offsetting margin pressure |
| Komatsu | $580M ($230M inventory + $350M profit) | 4% North America hike (Aug 2025), more planned | Japanese OEMs (Hitachi, Kubota) maintaining hikes despite tariff pauses |
| John Deere | $1.2B pre-tax | $70M NC excavator plant expansion | Only US-designed, developed, and manufactured excavator line post-expansion |
The pattern is clear: OEMs are not absorbing these costs. They’re passing them through, and the cumulative effect across your fleet adds up fast.
What This Means for Your Next Purchase
The math varies depending on what you’re buying and when. A $200K excavator from Komatsu carries roughly $8,000 more in tariff pass-through at 4%. Caterpillar hasn’t disclosed uniform percentage increases, but with $2.6B spread across a $67.6B revenue base, the blended impact runs 3.8% before accounting for segment-level variation.
For telehandler buyers specifically, the picture depends heavily on brand and origin country:
| Equipment Origin | Tariff Scenario | Estimated Price Impact |
|---|---|---|
| US-manufactured (JLG, CAT) | Steel/aluminum input tariffs | 2-4% on new units |
| EU-imported (Manitou, Merlo, Dieci) | Section 232 + reciprocal tariffs | 5-8% on landed cost |
| Japan-imported (Komatsu) | Full 4%+ confirmed hike | 4-6% on list price |
| Direct-from-manufacturer (CE-certified) | Factory pricing, no dealer margin | 30-50% below Western brand list before tariffs |
That last row is worth a closer look. With Western OEMs raising prices and dealer margins staying firm, some buyers are re-evaluating their sourcing strategy entirely. Factory-direct procurement from CE/EPA-certified manufacturers bypasses the dealer markup and locks in production pricing before further tariff rounds hit.
Timing Your Purchase
Caterpillar’s Q4 2025 earnings showed record revenue of $67.6 billion, and the company’s backlog remains at historic highs. Demand isn’t falling. Equipment financing volumes hit near-record levels in January 2026 at $11.6 billion, up 14-22% year over year. That means dealers have pricing power and little incentive to discount.
Your best leverage right now: in-stock units at dealers. Factory orders carry the full tariff premium plus 12-20 week lead times. Dealer inventory that was purchased before the latest tariff rounds may still carry the older cost basis. Ask for the unit’s manufacturing date and import documentation.
If you’re running a mixed fleet, this is also the moment to compare lease vs. buy. The Equipment Leasing & Finance Association reports a 12.3% CAGR in equipment leasing, driven by operators who’d rather preserve cash when unit costs are volatile.
Your Move
If you’re committed to a specific Western brand, push hard on dealer stock pricing and ask for pre-tariff inventory. That’s your best discount window.
If you’re open to equivalent specs at lower acquisition cost, factory-direct sourcing from certified manufacturers is now a viable strategy that more fleet buyers are adopting. The key is verifying certifications (CE, EPA Tier 4 Final, Stage V) and spare parts support before committing.
Deere’s $70 million Kernersville, NC excavator plant expansion signals a longer-term shift: OEMs are reshoring to dodge tariffs permanently. But that capacity won’t come online for 18-24 months. In the meantime, you’re paying the tariff premium on every imported unit or component.
Looking for telehandler pricing that isn’t subject to dealer markups or tariff pass-through? Check current factory-direct availability with full CE/EPA documentation.
