By Jamie Martin
John Deere announced workforce reductions affecting 238 employees at its facilities in Waterloo, Iowa, and in Moline and East Moline, Illinois. The reductions come as the company navigates weaker sales and higher expenses in 2025.
Year to date, Deere’s net income has fallen 26% while sales are down 9%. Management attributes the decline to lower commodity prices—pressuring farm budgets and equipment purchases—and to a sharp rise in tariff-related costs. “Tariff costs in the quarter were approximately $200 million, which brings us to roughly $300 million in tariff expense year to date,” said Josh Beal, Director of Investor Relations at John Deere.
Looking ahead, Deere lifted its full-year tariff-cost outlook to $600 million, up from $500 million previously. The increase reflects a trade environment defined by broad U.S. tariffs of 10%–50% on most imports, with certain countries and industries seeing even higher rates. The average tariff rate, now estimated at 18.6%—the highest since 1933—adds cost pressure to materials and components used in heavy equipment.
For producers, the intersection of softer crop prices and higher equipment input costs can delay modernization plans, tighten dealer inventory turns, and slow aftermarket upgrades. Deere indicates it will calibrate production schedules, prioritize operational efficiency, and support customers with parts, service, and precision upgrades to improve return on existing fleets.
Industry watchers will monitor whether commodity markets stabilize and whether policy shifts ease import costs. Until then, the company’s actions highlight how global trade settings and farm economics directly influence employment and investment decisions in North American agricultural manufacturing.
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Categories: National