Kubota to raise US prices as steel tariffs squeeze margins

Japanese tractor maker follows rival Deere in passing on higher costs

The U.S.-China trade war has dented American demand for large farm equipment, like this Kubota M96S tractor, but the company's compact tractors continue to sell well. © Reuters

DAISUKE ITO, Nikkei staff writer

February 26, 2019 06:15 JST

OSAKA -- Kubota will increase prices for agricultural equipment sold in the U.S. by an average of 2% to 3% next month, passing on higher steel costs spurred by Washington's tariffs last year.

The price hike, the Japanese company's first in the U.S. since 2013, follows an increase by American rival Deere & Co., the world's largest farm equipment maker. The 25% duties levied on steel products by Washington last March to protect the U.S. steel industry raised prices, and these prices remain elevated even though the increase has leveled off.