Tariff instability and a break with China is hitting American companies hard, and homegrown manufacturer John Deere is no exception

"President Donald Trump has claimed to support domestic manufacturing, but his tariff policies have already hit farmers-and by extension homegrown manufacturer John Deere. An economic battle with China has hit farmers' pockets as soybean exports to a large buyer fell. Meanwhile, tariff instability has forced farmers to exercise caution and cut back on new equipment purchases, which has affected John Deere's bottom line."

"John Deere is the kind of homegrown, domestic manufacturer President Donald Trump claims to support, yet his tariffs and hostility toward China are threatening its bottom line. The Moline, Ill.- based tractor and agriculture machinery manufacturer boasted a record profit just two years ago, but since then its luck has turned. That's partly because of instability related to tariffs and an economic fight with China. Last month, the company said it would lay off 238 production employees in Illinois and Iowa, citing "decreased demand and lower order volumes.""

"On the company's most recent earnings call, investor relations director Josh Beale said there were "pockets of optimism" across John Deere's business, but added customers may be feeling the sting of tariffs and instability. "Given challenging industry fundamentals and evolving global trade environment and ever-changing interest rate expectations, our customers are operating in increasingly dynamic markets, which naturally drives caution as they consider capital purchases," Beale said."

Tariff policies and an economic dispute with China have reduced soybean exports to a major buyer and squeezed farm incomes, prompting farmers to delay or forgo new equipment purchases. John Deere has experienced falling demand, a 25% drop in third-quarter net profit, a 9% decline in worldwide sales to $3.9 billion from $5.8 billion, and reduced annual profit guidance. The company announced layoffs of 238 production employees in Illinois and Iowa due to decreased orders. Company leadership attributes weaker equipment demand to challenging industry fundamentals, evolving global trade conditions, and shifting interest-rate expectations that drive purchaser caution.

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