Tariffs bite Deere margins as ag chugs along

Deere & Co.’s latest earnings report put a spotlight on the mounting costs of tariffs across the agricultural and heavy machinery sectors.

The Moline, Ill.-based global equipment manufacturer expects direct pretax tariff expenses of $1.2 billion for fiscal 2026 – double the prior year’s burden. Management confirmed a tariff run-rate of roughly $300 million per quarter, evenly spread. This has created sustained margin pressure across its key business units.