Friday, 18 April 2025 09:55

JCB expands new Texas factory after US tariff hike

Written by  Mark Daniel
In response to the increased tariffs, JCB is increasing the size of its new factory currently being built in Texas. In response to the increased tariffs, JCB is increasing the size of its new factory currently being built in Texas.

Since Donald Trump’s import tariff announcement, the world has been on a wild economic ride.

Indeed, by April 8, US companies alone had lost around US$2.5 trillion in value, only ever seen before in the Great Depression, the Global Financial Crisis and the Covid crisis – none of which were intentionally started. Of course, farm machinery manufacturers will be affected, particularly those with production sites in Europe who ship to the United States.

In response to the increased tariffs announced on April 2, JCB says it will increase the size of its new factory that is currently being built in Texas.

“In the short term, the imposition of tariffs will have a significant impact on our business,” said Graeme Macdonald, chief executive of JCB – the UK-based construction and agricultural equipment manufacturer.

“In the medium term, our planned factory in San Antonio will help to mitigate the impact; we are thankful that the tariff is only 10%, but we hope that the UK Government will conclude negotiations on a trade deal in the coming days and weeks.”

Trump used ‘emergency powers’ to issue a 10% baseline tariff across the board on all imports to the US that took effect on April 5th. Higher tariffs are set for countries with larger trade surpluses with the US, like China at 54% higher and the European Union at 20% higher. O course, the UK left the European Union in 2020.

JCB has announced that its “original plan” to build a 46,500 square metre plant in San Antonio has now been doubled to 93,000 square metres or 22 acres, easily making it the company’s second-largest factory. The $500 million plant is set to begin production in 2026 and employ 1500 people, complementing the company’s North America headquarters in Savannah, Georgia, where it has been for 25 years, employing about 1000 people. That 46,500 square metre facility manufactures skid steer loaders, compact track loaders and Teleskids. It also produces the High Mobility Engineer Excavator and Light Capability Rough Terrain Forklift for the US military and other NATO-aligned forces.

“JCB has been in business for 80 years this year, so we are well accustomed to change,” said JCB chairman Sir Anthony Bamford. “The United States is the largest market for construction equipment in the world, and President Trump has galvanized us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964.”

Elsewhere, global ag equipment company CNH Industrial says it has temporarily paused shipments due to uncertainty stemming from the ongoing tariff situation. In a statement, the company is stopping shipments from North America plants and European imports, effective immediately. Officials say the move is temporary until they assess the full impact of tariffs on pricing. The company stated there are no impacts to production and shipment of parts will continue as planned.

More like this

Hose runner saves time and effort

Rakaia-based equipment manufacturer Pluck’s Engineering will soon start production of a new machine designed to simplify the deployment and retrieval of temporary water troughs used in winter break feeding.

Case IH partners with Meet the Need

Tractor manufacturer and distributor Case IH has announced a new partnership with Meet the Need, the grassroots, farmer-led charity working to tackle food insecurity across New Zealand one meal at a time.

Canterbury farmer saves time with spreader upgrade

With a focus on producing their own on-farm dairy feed requirements, it would be safe to say that the Fleming family are no strangers to a fertiliser spreader on their North Canterbury farm, near Culverden.

The JAC of all trades at National Fieldays

Already causing a stir in the burgeoning ute sector, JAC (“Jack”) has raised its profile by being named as the latest major sponsor of June’s National Fieldays, where it will officially introduce its top-of-the-line T9 4WD double cab ute to the market, joining its fleet of 100% EV and Cummins diesel trucks.

New Holland combines crack 50 years

New Holland is celebrating the 50th anniversary of the introduction its Twin Rotor threshing and separation technology, which has evolved from a single model in 1975 to a range today, led by the new CR10 and CR11.

Featured

NZ growers lead freshwater compliance

Horticulture New Zealand (HortNZ) says that commercial fruit and vegetable growers are getting ahead of freshwater farm plan regulations through its Growing Change project.

Case IH partners with Meet the Need

Tractor manufacturer and distributor Case IH has announced a new partnership with Meet the Need, the grassroots, farmer-led charity working to tackle food insecurity across New Zealand one meal at a time.

25 years on - where are they now?

To celebrate 25 years of the Hugh Williams Memorial Scholarship, Ravensdown caught up with past recipients to see where their careers have taken them, and what the future holds for the industry.

National

Top ag scientist to advise PM

A highly experienced agricultural scientist with specialist knowledge of the dairy sector is the Prime Minister's new Chief Science Advisor.

Machinery & Products

Hose runner saves time and effort

Rakaia-based equipment manufacturer Pluck’s Engineering will soon start production of a new machine designed to simplify the deployment and retrieval…

» Latest Print Issues Online

Milking It

Science fiction

OPINION: Last week's announcement of Prime Minister’s new Science and Technology Advisory Council hasn’t gone down too well in the…

Bye bye Paris?

OPINION: At its recent annual general meeting, Federated Farmers’ Auckland province called for New Zealand to withdraw from the Paris…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter