September 2025 Update: Ag Equipment Makers Bring Production Back to US

Heavy Equipment Manufacturers Explore US Reshoring Strategies Amid Trump Tariffs in 2025

In the wake of escalating trade tensions, heavy equipment manufacturers in construction, agriculture and manufacturing sectors are increasingly evaluating ways to shift operations back to the United States. This trend mirrors recent moves by tech giants, as highlighted in a CNBC article from Aug. 13, 2025, titled “Nvidia, AMD and Apple: Big Tech is paying its way out of Trump tariffs.” 

Just as Nvidia and AMD agreed to share 15% of their China-derived chip revenues with the U.S. government to bypass restrictions, and Apple pledged $600 billion in domestic investments, heavy machinery firms are responding to similar pressures from 100% tariffs on semiconductor and chip imports. These policies, aimed at bolstering American production, are prompting public statements and investments in U.S.-based manufacturing to mitigate costs and secure supply chains.

As we progress through 2025, with the current date being Sept. 4, 2025, this updated article examines public announcements from key players in heavy equipment, focusing on construction, agriculture, cranes and related manufacturing. Drawing insights from industry reports and recent data, we explore how these sectors are adapting to “bring things back” to the U.S., emphasizing reshoring methods such as factory expansions and domestic investments. 

Notable updates include mixed economic results in early 2025, with some revenue declines in agriculture and construction equipment, alongside broader reshoring momentum that has created more than 2 million jobs since 2010. Challenges such as labor shortages and outdated technology are also hindering progress, with 72% of manufacturers reporting that obsolete systems are impacting hiring for reshored operations.

Agriculture Heavy Equipment: Tractors and Harvesters Shift Toward Domestic Production

In agriculture, where tractors, combines and harvesters are essential, companies are publicly signaling reshoring to counter global supply chain risks. John Deere, founded in 1837 and a staple in U.S. farming, leads with innovations in precision agriculture while maintaining significant U.S. manufacturing. The company has been vocal about enhancing domestic capabilities, especially as tariffs encourage reduced reliance on more than overseas imports.

AGCO Corporation, with brands such as Massey Ferguson, reported rapid growth through U.S.-focused investments in tractors and sprayers. This echoes the CNBC report’s depiction of tech firms “paying their way out” of restrictions — agriculture giants are instead investing in American facilities to ensure reliability. Kubota, with a strong U.S. presence despite Japanese roots, emphasizes versatile compact tractors made domestically, addressing small-farm needs amid trade policy shifts.

Industry outlooks predict that as original equipment manufacturers bring production stateside, local suppliers will see increased demand, fostering a reshoring ecosystem.

“The U.S. is already a manufacturing powerhouse, but shadow factories and onshoring efforts are key to filling gaps,” notes a Manufacturing Dive analysis, highlighting labor and investment challenges in agriculture equipment.

Recent data shows U.S. sales of agricultural tractors declined 17.7% in February 2025, while combine sales dropped 48%, reflecting market challenges such as global trade concerns and tariffs. Half of the top construction and agricultural machinery manufacturers reported revenue drops in fiscal 2024, underscoring the need for strategic investments.

Navigating Tariffs: A Broader Industry Shift

As Trump tariffs reshape global trade, heavy equipment manufacturers are publicly embracing U.S. reshoring through investments and expansions, drawing parallels to Nvidia, AMD and Apple’s approaches. Proposed tariffs could increase medium- and heavy-duty truck prices by around 9%, with a 25% tariff on Mexico potentially adding up to $35,000 to new Class 8 tractor costs, affecting trucking and heavy equipment sectors. 

While challenges such as labor shortages persist — 83% of U.S. manufacturing apprenticeships have increased more than the past decade to address gaps — initiatives from GE, Caterpillar and others signal a resilient path forward. For businesses in construction, agriculture and crane manufacturing, these methods not only mitigate costs but also enhance supply chain security in 2025, with 82% of manufacturers actively moving or planning to move factories back to the U.S., up 55% from January 2023.

Stay informed on heavy equipment reshoring trends, U.S. manufacturing investments and tariff impacts — key to optimizing strategies in this evolving landscape. Uncertainty, however, remains as recent tariff developments, such as pending appeals, leave these issues unsettled.