John Deere Hit With Big Losses as Tariffs, Global Trade Tensions Bite
One of America’s most iconic manufacturers, John Deere, has announced significant layoffs at three major Midwestern plants. The move highlights how global trade disputes, weak crop prices, and tariff battles are squeezing farmers — and now hitting factory workers in America’s heartland.
The layoffs, which were confirmed after initial confusion over WARN notices, will impact 238 workers across Illinois and Iowa:
- East Moline, Illinois (Harvester Works): 115 employees, last day August 29
- Moline, Illinois (Seeding & Cylinder): 52 employees, last day September 26
- Waterloo, Iowa (Foundry): 71 employees, last day September 19
John Deere stated that “decreased demand and lower orders” drove the cuts. The company promised affected workers would remain eligible for benefits and possible recall.
Financial Pain Mounts
The announcement came just after John Deere’s third-quarter earnings revealed sharp declines:
- Net income down 26% to $1.3 billion
- Sales down 9% to $12 billion
Executives admitted tariffs alone cost the company nearly $200 million last quarter, with total tariff expenses expected to hit $600 million for the year. Rising duties on steel, aluminum, and international trade partners like the EU and India were cited as the “primary drivers.”
“Farmers, growers, and producers are facing tough times right now, and that reality is having a direct effect on our business,” John Deere stated.
Farming Industry on Edge
The pressure on John Deere is part of a wider struggle across the agricultural sector. Competitors AGCO and CNH Industrial also reported weaker sales as farmers hold off on buying new machinery.
Analysts warn that falling commodity prices and trade uncertainty are leaving farm families cautious about spending. Farmers are simply not willing to gamble on high-priced equipment when profit margins remain tight.
But there’s another side of the story. According to Goldman Sachs, overall earnings across the S&P 500 jumped 11% year-over-year — far surpassing expectations.
The White House celebrated the news:
“Because of President Donald J. Trump’s bold, growth-focused policies, American companies are prospering like never before — beating Wall Street expectations and driving the stock market to historic highs.”
John Deere Betting on America
Despite the current setbacks, John Deere has made a long-term pledge to U.S. workers. The company plans to invest $20 billion into American manufacturing over the next decade.
“Recent farm policy wins and new trade deals could boost demand for renewable fuels and farm machinery,” John Deere said. “We remain committed to strengthening U.S. manufacturing and keeping our footprint competitive.”
For farmers, workers, and manufacturers alike, the road ahead may be rocky — but the commitment to American jobs remains strong.