Despite logging record profits in 2023, agricultural machinery giant John Deere has seen Trump administration tariffs crater its business this year, reporting a 26% year-over-year dip in its net income for the fiscal quarter that ended on July 24.

The New York Times reports that John Deere says tariffs on foreign steel and aluminum have cost the company an estimated $300 million so far in 2025, and it expects to take another $300 million hit by the end of the year. John Deere also announced layoffs at three Midwest facilities in mid-August, impacting 238 employees combined between Illinois and Iowa. That's despite the fact that the company sources just 25% of components for its products from foreign countries, and assembles three-quarters of its machines in the U.S.

Many of John Deere's struggles also predate the Trump administration's flurry of trade disputes. In early 2024, the company began running production at its factories significantly below capacity, and offering more attractive financing rates to buyers, in response to a glut of existing machines that were sitting unsold at dealerships. But as farmers have continued to opt to repair old machines rather than buy new ones to save on added costs from retaliatory Chinese soybean tariffs, John Deere's sales have failed to pick back up, leaving the company in an even more precarious position in the months ahead.

The company's path forward will hinge on whether it can ride out the volatility of the Trump's administration's chaotic trade policies. For now, management is signaling patience, but with costs climbing and customers hesitant to buy, the next few months could prove crucial for the iconic tractor maker as it tries to stabilize sales, reassure investors, and avoid becoming one of the most visible casualties of the White House's trade wars.