The article reports on John Deere’s recent financial challenges, citing a significant decline in sales and profits due to increased tariffs and struggling U.S. farmers.
Higher tariffs on metals have added $600 million in costs for John Deere, leading to layoffs and a shift among farmers toward purchasing used equipment instead of new.
The company expects a 15-20% drop in 2025 sales for large agricultural machinery, its main revenue source.
These issues are linked to ongoing U.S. trade policies and diminished overseas demand for American agricultural products.
Action Items
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John Deere Financial and Market Impact
John Deere reported net income down 29% from a year earlier, highlighting increasing financial pressure.
The company cites $300 million in tariff-related costs already incurred, with another $300 million expected by year-end, mostly from steel and aluminum tariffs.
As a result, John Deere laid off 238 employees at its Illinois and Iowa factories over the summer.
The company forecasts a 15-20% decrease in 2025 sales of large agricultural machinery.
Farmer Demand and Used Equipment Market
Due to rising prices for new tractors (up at least 60% in eight years), farmers who formerly purchased new now often seek used equipment.
Used tractor dealers, like Josh Enlow in Tulsa, Oklahoma, have noticed a customer shift toward secondhand products, driven by significant price increases—some new tractor models now cost at least $250,000 more than before.
Impact of Tariffs and Trade Policy
President Trump’s tariffs and trade policies are directly impacting John Deere and its customer base.
U.S. farmers face declining overseas demand, compounding the effects of higher equipment costs and straining the agricultural sector.
Decisions
No formal decisions recorded — The article only reports on company status and market conditions.
Open Questions / Follow-Ups
How will John Deere continue to respond to prolonged tariffs and weakening farmer demand?
Will further layoffs or operational changes occur if current trends persist?
What policy changes, if any, are being considered to support U.S. manufacturers and farmers in this environment?