U.S. President Donald Trump’s main economic policy of 2025 thus far involves rolling out tariffs on major U.S. trade partners to address trade deficits. This practice is disruptive to consumers and manufacturers in the U.S. alike, as suddenly raw materials like aluminum will be more expensive. Additionally, importing from longtime trade partners like Canada and China will be difficult to predict as certain tariffs are rolled back and others are increased. Additionally, the U.S. imports quite a lot of manufacturing and packaging equipment from several countries; as such, the market is risky at best in terms of price stability.
New equipment is likely to be more expensive; however, with this economic impact comes a unique opportunity: the used manufacturing equipment market. Here, we’ll break down all the ways used equipment buyers can harness economic uncertainty and come out ahead.
How Tariffs Are Driving Demand for Used Equipment
Tariffs are effectively an import tax in which a certain percentage of cost is levied to both protect American manufacturing interests as well as address a trade deficit. For example, a 25% tariff levied on all foreign cars would more or less ensure that new, imported cars would have a higher expense, incentivizing consumers to consider buying American-made cars instead. For those in the beverage industry, the tariffs on aluminum in particular will hit brewers quite hard due to canning operations.
This all but guarantees that new equipment prices will rise due to these import duties, whether on the equipment itself or on the raw materials required to make new units. That means that the most cost effective way to purchase equipment is likely now used machinery.
Because used equipment has competitive pricing compared to new, many buyers will be pivoting their strategy over to shopping the used market– which is why it will pay to beat the crowd!
Avoid Tariff Headaches — Why Buying Used Makes More Sense Than Ever
At first glance, you may be tempted to purchase new equipment because it will, in theory, last longer than something with years of wear and tear. However: is the initial steep cost worth the lifespan difference? Most equipment is robust and will last a very long time; unless there is a specific new type of technology, used equipment is now more valuable than ever compared to purchasing something new. New equipment often comes with a warranty and might be more efficient, but it’s up to you to decide if the large difference in initial investment is worth it.
If you’re just starting a business or scaling it with broader concerns about the economy, conservative spending makes sense– and used equipment will cost less. While the tradeoff is a potentially shorter lifespan and no warranty, the ultimate total cost of ownership for well-maintained used equipment will likely have a slight edge in this tariff economy.
With this in mind, the less money put into equipment means the greater the potential profit margin available to manufacturers, which is a huge benefit in a bearish economy where consumers are spending less overall. Our recent January survey on tariffs saw that even before Trump took office, 86% of consumers believed that prices would rise, and two thirds were changing their shopping habits: consumer spending will be down, so anywhere you can maintain profitability is of utmost importance.
Is Used Equipment Tariff-Free?
Any used equipment that is already in the United States is tariff free, as it’s already assembled and does not need to cross any borders to arrive at your doorstep.
What about equipment in Canada, or Mexico? It depends. The first step is to check the Harmonized System (HS) Code, the code by which all materials for import or export are categorized. This will make it easier to figure out the exact tariff requirements on a piece of used equipment. You can search for your desired equipment’s HS code on the U.S. Census website here. Once you have your HS code, look up tariffs with CustomsInfo here.
If all this feels like too much red tape, reach out to Bid-on-Equipment’s team for help navigating potential tariff costs for your specific pieces of equipment– we’re happy to help!
Boosted Supply Means More Selection
As companies and business owners pivot to investing in more used equipment rather than new, more used inventory will enter the market to meet demand. With this comes more choice for you– a greater variety in equipment types, caliber, scale, and price points, which means it really will be a buyer’s market. Similarly, enterprises looking to slim down their production and add more revenue will be more motivated to sell equipment, which means there’s more opportunity to negotiate pricing.
Buyers will benefit from motivated sellers– more equipment at negotiable prices means buyers hold the power, even as tariffs rock the new-equipment world.
The Tariff Advantage of Domestic Equipment
What if you didn’t have to think about tariffs at all? This dream can be achieved if you source used equipment domestically, where it won’t be subject to tariffs because there’s nothing else to import– it’s all right here already. This also offers the added benefit of faster, cheaper delivery and reduced logistical headaches, as oftentimes imports are held up in customs. You will benefit from cheaper equipment that fits your needs faster!
There’s another type of tax advantage too: U.S. tax code section 179 allows business owners to deduct the cost of a depreciating piece of equipment and could result in a heavy chunk of change back in your pockets during tax season.
Act Soon and Beat the Flood of Used Equipment Buyers
As markets take hits with each tariff announcement and a potential trade war brewing, businesses will be liquidating assets faster to stabilize in this unstable economy. This results in motivated sellers, more opportunities for negotiation, and a high likelihood of below-market deals– for now.
The best way to secure a deal that puts you ahead of the rest is to act now before the rest of the nation catches up– browse our listings today to see how our offerings can take your business to the next level and minimize financial fallout from rolling tariffs and a looming trade war.
