There is no denying the ag sector has been hit hard by recent tariff talks, but it is not just farmers feeling the impact.
Equipment makers, including John Deere, are also facing rising costs for raw materials.
According to John Deere’s Darren Havens, “Generally speaking, for the U.S. and Canada, and you think about it from a large ag equipment perspective, which I mostly represent, almost 75% of the goods that we sell in the U.S. are made in the U.S., and that’s not only us but it’s also the suppliers and the steel that we get that goes into making our products.”
However, that does not exclude John Deere from tariff pressures.
“I would say, generally speaking, that’s not a major challenge or concern for us, at this point, with tariffs, but I mean, there are components that— no different from whenw e went through COVID times— it does start to challenge the supply base whenever it goes to things that are potentiall subject to tariffs or non-tariff barriers.”
Now, with a new trade deal put in place with China, some of these concerns may be set to change.
Plan for a cooler global trade market in 2026 with tighter margins on exports, potential rate shifts, and premiums for reliable deliveries into Asian and African growth markets.
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