KOMATSU CONCERNED ABOUT TRUMP'S TARIFFS AND TRADE POLICIES
KOMATSU CONCERNED ABOUT TRUMP'S TARIFFS AND TRADE POLICIES
Komatsu fears retaliatory tariffs from Canada on U.S.-made mining machines, impacting its exports, especially since Canada is its largest market for these products.
Potential tariffs on imports from Canada, China, and Mexico could lead to retaliatory barriers, threatening Komatsu’s export-focused business model.
With 8,000 employees in the U.S., Komatsu relies on free trade, exporting $1 billion more than it imports annually.
A trade war could hurt its operations.
Tariffs on Chinese sheet metal for U.S. machinery have minimal impact and could be addressed by shifting to Southeast Asia suppliers.
Trump's pro-fossil fuel policies may counterbalance the decline in U.S. machinery demand due to rental market oversupply.
Komatsu will invest $80 million in an Arizona mining equipment service center and $65 million in ABS, a Detroit-based battery maker.
Komatsu anticipates a "challenging" business environment with flat global demand, rising costs, and limited price increase opportunities as supply chains normalize.
