Major company hailed by Trump sees profits plunge as president leaves farmers reeling
John Deere stocks have plummeted as President Donald Trump's tariffs have delivered another big blow to U.S. farmers.
As farmers see a lowering demand for some crops overseas, the company cites a 15 to 20 percent drop in large agricultural machinery purchases, the New York Times reports. That downward trend is expected to carry into 2026.
An American mainstay for the rural economy, the leading manufacturer says that metal tariffs would cost the company $600 million. It also cites climbing interest rates and a shifting global trade economy, prompting a challenging time for farmers to plan upcoming crop seasons.
Just two years ago the company reported record profit. However, Trump's tariffs and changing trade policies have shifted the business, making it more challenging and unpredictable for customers who rely on the agricultural equipment.
Trump has cited the company as an ideal American manufacturer that he wants more of in the country.
Now the company reports significant losses as higher tariffs — mostly on steel but also aluminum — have cost John Deere $300 million so far and nearly another $300 million loss is expected by the end of 2025. The company laid off 238 employees in Illinois and Iowa factories over the summer.
John Deere started with a steel plow in 1837 and now employs 30,000 workers across the U.S. The iconic green and yellow equipment helps produce billions of dollars in crops that feed the country and are exported globally. Most of it — 75 percent of the machines — are assembled in America and only 25 percent of product components are foreign manufactured.
The company anticipates further reductions in sales as demand for crop prices fall, with many farmers turning to used equipment instead of spending money on new purchases. It's is offering financing for customers in hopes to clear inventory and fuel more sales.