John Deere has recently highlighted the significant financial burden tariffs are placing on its business, estimating that they will cost the company nearly $600 million in fiscal year 2025. Company officials said tariff-related expenses were already about $300 million midway through the year, with the final impact expected to roughly double that amount. Deere noted that these added costs are cutting into margins across its core agriculture, construction, and forestry equipment segments.
The company also warned that tariffs are contributing to a sharp slowdown in demand for new machinery. Deere expects sales of large farm equipment to decline by 15–20%, as many farmers are delaying purchases or turning to repairs and rentals instead. Executives explained that high interest rates and general economic uncertainty are already weighing on customers, and the tariffs have intensified these pressures, further dampening farmers’ willingness to invest in new equipment.
In response, Deere said it is revising its profit outlook downward, trimming the upper end of its annual forecast by several hundred million dollars. Management is also considering price increases, supply chain adjustments, and efficiency improvements to offset tariff costs. Still, the company acknowledged that tariffs remain a major headwind for both its short-term financial performance and longer-term demand, complicating its efforts to navigate an already difficult market environment.