Construction Equipment Makers Reap Millions in Tariff Refunds Amid Ongoing Trade Uncertainty

Heavy construction equipment manufacturers are receiving millions of dollars in tariff refunds from the US government after a recent Supreme Court ruling.

The court found that President Trump's International Emergency Economic Powers Act (IEEPA) tariffs, implemented at the start of 2025, were unauthorized. These tariffs had been imposed on Canadian and Mexican imports due to concerns about an influx of illicit drugs, as well as fluctuating tariffs on various countries aimed at addressing trade deficits.

The US government has so far refunded $100 billion of the $166 billion it accumulated through IEEPA tariffs. Caterpillar reported receiving $392 million in tariff refunds, while Doosan Bobcat expects to receive $81 million. John Deere recorded tariff refunds of $110 million and $382 million for the third quarter and first nine months of 2026, respectively.

OEMs are still facing consistent tariff pressure from other sources, including Section 232 tariffs on steel, aluminum, and copper, as well as China Section 301 tariffs ranging from 7.5% to 100%. The US and Canada are also engaged in a trade war, with the US imposing a 50% tariff on $27.6 billion of Canadian goods.