John Deere, a name synonymous with American agriculture, is facing tough times. The iconic farm equipment manufacturer recently announced a series of layoffs across its Midwestern plants, directly impacting more than 200 workers. The company’s latest earnings call and subsequent statements point to a confluence of factors behind this downturn, but one culprit stands out: the tariff policies introduced by President Donald Trump.
On August 18, 2025, John Deere revealed it would be laying off 71 workers at its Waterloo, Iowa foundry and another 167 employees at various locations in Illinois. According to The Des Moines Register, these layoffs are just the latest in a string of workforce reductions linked to broader economic uncertainty. In total, the company will let go of 115 employees at its East Moline, Illinois facility later this month, followed by 52 workers at a Moline, Illinois plant and 71 in Waterloo, Iowa next month. This wave of job cuts has sent shockwaves through communities that have long relied on John Deere for stable employment and economic vitality.
John Deere’s own leadership has not shied away from naming the root causes. During the company’s recent earnings call, executives cited the struggling agricultural economy and the unpredictable landscape created by new tariffs as key factors. “As stated on our most recent earnings call, the struggling ag economy continues to impact orders for John Deere equipment,” the company said in a statement shared with Illinois Public Media. “This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term.”
But what’s really driving this caution among customers? According to Cory Reed, president of John Deere’s Worldwide Agriculture and Turf Division, much of it comes down to uncertainty about the future. “If you have customers that are concerned about what their end markets are going to look like in a tariff environment, they’re waiting to see the outcomes of what these trade deals look like,” Reed explained during the earnings call, as reported by The New Republic. The sentiment is echoed by CFRA Research analyst Jonathan Sakraida, who observed, “Tariff uncertainty and deflated commodity prices have made farmers increasingly cautious in spending decisions and more hesitant to accept higher machinery prices.”
Farmers, the backbone of John Deere’s customer base, are feeling squeezed from multiple directions. With commodity prices depressed and the cost of imported materials rising due to higher tariffs, many are opting to rent machinery rather than buy new equipment. This shift in buying behavior has contributed directly to John Deere’s downturn in profits, as noted in their latest financial disclosures. The company’s director of investor relations, Josh Beal, put it plainly: “The primary drivers for the change from last quarter are increased tariff rates on Europe, India, and steel and aluminum.”
The ripple effects of these tariffs extend well beyond John Deere’s balance sheet. The layoffs at John Deere are not just numbers on a page—they represent the livelihoods of workers and families in Iowa and Illinois, regions where manufacturing jobs are a cornerstone of local economies. For many, the news has been a bitter pill to swallow, especially given the company’s longstanding reputation as a reliable employer and the broader promises made by President Trump to support American manufacturing and farming communities.
The irony is hard to miss. President Trump’s tariff policies were pitched as a way to protect American industries and workers from unfair foreign competition. Yet, as The Des Moines Register and The New Republic both highlight, the very demographics Trump championed—factory workers and farmers—are now bearing the brunt of the fallout. Instead of a manufacturing renaissance, companies like John Deere are facing diminished demand and forced to make difficult decisions about their workforce.
And it’s not just John Deere feeling the pinch. The broader farm-equipment sector is grappling with similar headwinds. Farmers, wary of volatile markets and uncertain trade negotiations, are holding off on major purchases. This hesitancy is compounded by the direct impact of tariffs on the cost of raw materials like steel and aluminum, which are essential for manufacturing farm machinery. The result? Higher production costs, slimmer profit margins, and fewer sales.
There’s also a legal dimension brewing in the background. Recent lawsuits filed by small businesses against the Trump administration have challenged the legal foundation of the tariffs themselves. If courts ultimately rule these tariffs illegal, the federal government could be on the hook to return billions in tariff revenue to the companies that paid them. Such a scenario would be a logistical nightmare for Washington and a financial disaster for the Treasury—one that would bring yet another layer of uncertainty to an already fraught economic landscape.
For now, John Deere is trying to weather the storm. The company’s leadership has emphasized that every decision is being made with an eye toward long-term stability, but the near-term outlook remains cloudy. The layoffs are a stark reminder that even industry giants are not immune to the shifting tides of global trade policy and domestic economic pressures.
The communities affected by these layoffs are left to grapple with the immediate consequences. Local economies that depend on manufacturing jobs are bracing for a ripple effect—reduced consumer spending, lower tax revenues, and the potential for further job losses in supporting industries. It’s a story that’s playing out across the Midwest, where the intersection of global trade and local livelihoods is more than just a headline—it’s a daily reality.
As the debate over tariffs and their efficacy continues in Washington and beyond, the experience of John Deere and its workers serves as a cautionary tale. Policies designed to protect American interests can sometimes have unintended consequences, especially when they introduce uncertainty into markets that thrive on predictability. For farmers, factory workers, and the companies that serve them, the road ahead looks uncertain—marked by tough choices, cautious optimism, and the hope that stability will return before too long.
For now, the story of John Deere’s layoffs is a microcosm of a larger struggle—one that pits economic policy against the lived experiences of working Americans. The coming months will reveal whether these challenges are a temporary setback or the beginning of a more profound transformation in the way American industry navigates a rapidly changing world.
