Deere (DE) Blames Tariffs for Weak Profit

Reuters reports Tractor Maker Deere Flags Higher 2026 Tariff Hit, Weak Profit

Deere & Co (DE), flagged a bigger hit from tariffs in 2026 and forecast its annual profit below estimates on the back of weaker margins on large tractors, sending the farm-equipment maker’s shares down 5%.

CEO John May said ongoing margin pressures from tariffs would continue to weigh on its large farm equipment unit, although he expects to benefit from cost cuts and demand in its forestry and small agriculture markets.

The company expects a pre-tax tariff hit of around $1.2 billion in fiscal 2026, compared with nearly $600 million in 2025.

U.S. President Donald Trump’s sweeping tariffs have impacted companies across sectors, especially manufacturing and industrial firms that rely on imported raw materials.

Deere had also been considering production shifts, higher pricing and widening its portfolio of used equipment as it looked to offset weak demand.

CFRA Research analyst Jonathan Sakraida said he does not expect Deere to recover until fiscal 2027, adding that the company struggled to offset tariff impacts.

Damn – Wait Till 2027?!

Who couldda possibly thought Trump’s 2025 industrial miracle would have been delayed first to 2026 and now to 2027?

And weren’t other countries supposed to pay these tariffs?

Damn, my forecasts were that Deere would be making more stuff here and exports would be soaring by now.

Wait! Let’s check to see if I recall my forecasts properly.

Trump Adopts Chicago Cubs’ Perpetual Message, “Wait Till Next Year”

Please recall my October 5, 2025 post Trump Adopts Chicago Cubs’ Perpetual Message, “Wait Till Next Year”

“One Big Beautiful Bill” did not resonate. Trump opts for “Wait Till 2026”.

Team Trump Hones New Message

Reality has set in. Trump’s policies have not and will not succeed in 2025. So, it’s Wait Till Next Year.

The Wall Street Journal reports Trump’s Team Hones Message on Economy: Just Wait Until 2026

But “Wait Till 2026” is a fundamental mistake. When 2026 is bad, the message will have to change.

The beauty of a more Cub-esque “Wait Till Next Year” is the slogan never has to change.

Hmmm. Here is it 2025 and we are already discussing 2027.
How many thought that?

Related Posts

February 11, 2025: Trump’s Steel Tariffs Now Will Work as Good as the First Time

Q: How’s that? A: Very poorly.

March 13, 2025: The Amazing “Success” of Trump’s 2018 Aluminum Tariffs in One Picture

I hope you can take a bit of headline sarcasm because the true story follows.

September 6, 2025: Trump’s Aluminum Tariffs Seriously Backfire Already

Tariffs did not and will not bring production back to the US.

October 2, 2025: Trump Seeks a $10 to $14 Billion Farmer Bailout

Tariffs backfired on US agricultural exports.

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