This year, John Deere expects the effects of tariffs to amount to $600 million

John Deere has issued a warning that tariff costs for the agricultural machinery company may amount to as much as $600 million in fiscal year 2025.

The company published its earnings report for the third quarter of the fiscal year on Thursday. While it surpassed expectations for both revenue and net income, there were considerable declines compared to the previous year in net income and sales.

During the midday session, the stock dropped by approximately 7%.

The firm mentioned that the decline in quarterly operating profits was mainly attributable to increased tariffs and production costs linked to them.

On an earnings call with analysts on Thursday, Deere’s Director of Investor Relations, John Beal, stated that the company experienced a substantial impact in the third quarter as a result of tariffs.

“Tariff costs in the quarter were approximately $200 million, which brings us to roughly $300 million in tariff expense year-to-date based on tariff rates in effect as of today,” Beal said. “Our forecast for the pre-tax impact of tariffs in fiscal 2025 is now adjusted to nearly $600 million.”

Here’s how the company’s performance in the fiscal third quarter stacked up against Wall Street’s expectations, according to an LSEG survey of analysts:

Earnings per share: $4.75 compared to the expected $4.63 Revenue: $10.36 billion as opposed to the anticipated $10.31 billion