DE · News · 20260825N
Trade Policy and Tariffs
DEERE & CO · 2026-08-25 · Importance 78 · Surprise 74 · From source text
Deere expects tariff expenses to increase to approximately $1 billion in 2027, compared with an estimated $750 million in 2026 after significant refunds. The company received $382 million of tariff reimbursements in fiscal third quarter for levies that are no longer in effect. Despite producing most equipment in the United States, tariffs and oil prices are contributing to a dynamic inflationary environment that is affecting input costs and customer capital spending.
Key facts
- Deere & Co. expects tariff costs to be up from an estimated $750 million this year after significant refunds. source
- Deere & Co. expects a "step-up" in tariff expenses next year, forecasting costs closer to $1 billion for 2027. source
- The company received $382 million in tariff reimbursements in fiscal Q3 for now-defunct levies. source
- Despite most production being in the U.S., tariffs and oil prices contribute to a "dynamic inflationary environment," impacting input costs and customer capital spending. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | probable | -0.9% | Deere & Co. expects a "step-up" in tariff expenses next year, forecasting costs closer to $1 billion for 2027. |
| operating_income | negative | probable | — | Deere & Co. expects tariff costs to be up from an estimated $750 million this year after significant refunds. |