The first half of 2026 moved the used-equipment market in a handful of specific ways — some scary in the headlines, most manageable once you know the details. Here’s the short version of what changed and what it means for your next deal, with a link to the full story on each. Everything below is a dated snapshot; the details (and the citations) live in the linked posts.
None of this year’s shifts is a reason to sit on your hands. Each one just changes a number you should already be checking — origin, payment, tier, comps.
Tariffs: loud headlines, narrow impact on used machines
The U.S. Section 232 steel/aluminum tariff sits at 50%, but it targets steel products and listed parts — not whole machines — so a used machine usually isn’t hit by it. The tariff that can land on a whole machine is the IEEPA 35% on Canadian-origin goods, which USMCA-qualifying equipment is exempt from. Net: the key question is where the machine was made. See Tariff Watch, the parts angle in why attachment prices are climbing, and the full process in our cross-border shipping guide.
Financing & taxes: steady rates, generous write-offs
Rates held through the spring — the Fed at 3.50%–3.75% and the Bank of Canada at 2.25% — so used-equipment APRs stayed range-bound and lenders stayed active (financing rates in 2026). On the tax side, U.S. buyers have an unusually generous setup: 100% bonus depreciation is now permanent, and it (plus Section 179) covers used equipment — details and the year-end deadline in the Section 179 post.
Regulations: California’s diesel clock is ticking
The biggest regulatory story for older diesel iron is CARB’s In-Use Off-Road Diesel rule, which phases out older Tier engines on a 2024–2036 schedule and, since January 2024, bars adding most older machines to large and medium California fleets. If a machine works in California, its engine tier is now part of its value — see the CARB deadlines post.
Used prices & demand: soft values, tight supply, firm demand
Used values drifted down by low single digits year-over-year while inventory tightened (Sandhills, May 2026 data), even as construction demand held up — starts rose 9% in April. That combination — soft prices, thin supply, steady demand — is a narrowing buyer’s window. The details are in the price check and the spring buying-season outlook.
Electric & autonomous: real in places, hype in others
Compact battery-electric machines are genuinely fleet-ready for urban and indoor work, but runtime and price still limit the bigger classes, and true autonomy remains a mining story — general construction gets operator-assist, not driverless. The honest, buy-for-the-work version is in electric & autonomous in 2026.
The bottom line
- Buyers: the window favors you, but it’s narrowing — confirm tariff exposure by origin, lock financing while rates hold, and move on clean, low-hour machines before the season thins supply.
- Sellers: price to current comps, not 2022 peaks; clean machines in tight-inventory categories still command interest, and tier/records increasingly drive value.
- Everyone: the fundamentals still decide the deal — condition, hours, records, and a known landed cost. Start with the buying checklist or a valuation.
Sources & references
- White House — Restoring Section 232 tariffs (50% steel/aluminum; Canada exemption ended Mar 12, 2025)
- U.S. Federal Reserve — FOMC statement (target range 3.50%–3.75%, April 29, 2026)
- IRS — guidance on permanent 100% bonus depreciation under the One Big Beautiful Bill
- CARB — In-Use Off-Road Diesel-Fueled Fleets Regulation (program page)
- Sandhills Global — construction equipment market report, May 2026 data (June 4, 2026)
- Dodge Construction Network — construction starts up 9% in April 2026 (May 2026)
Last updated .
