As a combine manufacturer moves production from America to Europe, experts say tariffs may mean more

A combination manufacturer, whose primary customer is a farmer in Western Canada, has confirmed that he is producing some heavy machinery in the United States and Germany to avoid tariff uncertainty.

Claas usually produced its North American machinery at its plant at Omaha, Neb. But for the 2026 model year, Claas is carrying forward the assembly of its Canada-bound products-all of its Laksian 8000 series machines-Harswinkel, for their convenience in Germany.

The company wrote in a statement to CBC News this week, “This production allocation is a strategic response to current tariffs and trade framework – especially in current US customs – helps to keep prices competitive for farmers.”

Claas refused to provide any sales data, but said that its primary market in the North Market is farmers in Alberta, Suskechewan, Manitoba and, to some extent producers in Eastern Canada.

Class said that this decision would not be in the trimming in the Nebraska facility. The factory will focus on the assembly for the US market instead.

Two experts say this decision is not necessary about the current situation of trade between Canada and the United States. Instead, it is about further viewing and planning what will be a controversial renaissance of the Canada-US-Maxico agreement on business (CUSMA).

William Hagins, an assistant professor at Finance and Trade Economics at McMaster University, said the current trade dispute between Canada and the United States has been fought with his “gloves”.

He said that many products have been exempted under Kusma, but it could change whether and when the Renaissance begins, he said.

“It can be very messy and it can be very difficult, speaking financially,” Hugins said.

“We should expect to see businesses behaving carefully.”

Canada has a free trade agreement with Germany through the European Union.

Colin Mang, an economist at McMaster University, said, “It is not for the Renaissance and ensures that companies like class will be stable.”

Mang said that the class is one of the first companies to make such decisions, and he expects to follow more.

“You begin to announce a change in your supply chains to more companies in the next few months and declare a change in their manufacturing processes to overtake the possible tariffs in next year,” Mang said.

Both experts said that companies have almost always long -term plans, especially when millions of dollars can be spent to invest in production facilities.

Large multinational companies demand so much stability.

Mang said, “Being certainty in the context of tariff-free access, it sets a long way to forecast what their business will look in the coming decades.”

‘An important investment’

For farmers, the purchase of a new combination is important expenses.

Jeremy Welter, vice -president of the Agricultural Producers Association of Suskechewan, estimated that the average price for a new machine could easily reach more than $ 1 million, and does not include other potential equipment such as a header that a farmer may require.

Welter, whose farm Kerobert, is located in the north -east of Sansk, said it is an important purchase because an alliance is an essential tool during the crop season.

Welter said, “When you are talking about the money you are going to use for a piece of machinery, you know, six, probably seven, week a year, this is an important investment,” Welter said.

Welter said that the change in production by the class is a “good business decision” that can mean cheaper costs for farmers in western Canada.

Hugins stated that this border can be easy to transport machinery, but it is eventually about the lower line of a business.

Hugins said, “If it is cheaper to send it to an ocean instead of sending it to a heavy tariffed border, they will do what they will do.”