By Bob Tita

Deere expects its tariff costs to double to $1.2 billion when it faces a full fiscal year of higher duties.

The farm- and construction-equipment maker paid $600 million in tariffs during its 2025 fiscal year that ended Nov. 2. Most of that expense occurred during the last two quarters of the year. The company said Wednesday that it expects tariff costs of about $300 million a quarter during 2026, or $1.2 billion for the full year.

Deere is a major exporter of U.S.-made farm machinery, which exposes the Illinois-based company to higher tariffs levied by other countries in response to rising U.S. duties on imports since President Trump began his second term.

The company also is paying for higher U.S. tariffs on parts and materials used in its domestic plants. The company said it has been recovering its tariff costs by raising prices on its equipment and expects that to continue during 2026.

Deere forecast net income for 2026 of $4 billion to $4.75 billion, down from $5 billion in 2025. Shares were down around 4.5% early Wednesday afternoon.

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(END) Dow Jones Newswires

November 26, 2025 12:51 ET (17:51 GMT)

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