It’s a tough summer for anyone expecting a package from abroad, and for the workers on the factory floors of America’s agricultural heartland. Two seemingly separate stories—one about international shipping chaos caused by new U.S. tariff rules, the other about John Deere’s struggles in a battered agricultural economy—are colliding in ways that are reshaping the lives of ordinary Americans and the broader business landscape.
Let’s start with the global shipping snarl. If you’re waiting for a gift or a crucial part from overseas, you might be waiting quite a while. According to Bloomberg, a sweeping change to the U.S. tariff regime under the Trump administration has thrown international mail and e-commerce into disarray. The heart of the matter? The de minimis exemption, a policy that previously allowed packages valued at up to $800 to enter the U.S. without tariffs. That exemption covered a staggering four million packages a day—more than 1.35 billion a year, by the White House’s own count.
But, as of August 29, 2025, that threshold drops to just $100. Anything pricier will now face tariffs based on the country of origin. The new policy was rolled out with little warning and, according to Bloomberg, scant clarity about how tariffs will be collected or how foreign postal services are supposed to submit the necessary paperwork to U.S. authorities. The result? Postal services around the world are simply refusing to ship to the United States until the confusion is sorted out.
Korea Post announced it would stop sending packages to the U.S. starting Tuesday, August 26. Singapore’s SingPost and Austria’s postal provider are halting shipments a day earlier, on Monday, August 25. Norway and Finland took action even sooner, stopping shipments as of Saturday, August 23, while Belgium pulled the plug on Friday, August 22. Deutsche Post in Germany and the Czech Republic’s postal service have already suspended shipments entirely. Australia and the United Kingdom, meanwhile, have announced temporary suspensions until the dust settles.
For Americans, especially those in lower-income ZIP codes, the consequences are far from trivial. The National Bureau of Economic Research found that eliminating the de minimis exemption will increase average tariffs for the poorest areas to about 12%—nearly double the impact felt in wealthier ZIP codes. The researchers warn that the policy will reduce consumer welfare by between $11 billion and $13 billion a year. That’s a steep price for what many see as a hastily executed policy with more pain than gain.
Meanwhile, on the domestic front, the world’s largest manufacturer of farm equipment is feeling the pinch from a struggling agricultural economy. Deere and Company, based in Moline, Illinois, reported a sharp drop in both net income and sales for the third quarter ending July 27, 2025. According to a company release, net income fell to $1.289 billion, or $4.75 per share, compared with $1.734 billion, or $6.29 per share, for the same period in 2024. For the first nine months of the year, net income plummeted to $3.952 billion, or $14.57 per share, down from $5.855 billion, or $21.04 per share, the previous year.
Worldwide net sales and revenues dropped 9% for the quarter to $12.018 billion, and a staggering 18% for the first nine months, totaling $33.29 billion. Net sales specifically were $10.357 billion for the quarter and $28.338 billion for nine months, compared to $11.387 billion and $35.484 billion, respectively, in 2024. It’s a slide that’s hard to ignore.
John May, chairman and CEO of John Deere, tried to put a brave face on the numbers. “By proactively managing inventory, we’ve matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs,” May said in a news release. He added, “By continuing to address the high levels of used equipment in our industry, we’re building a healthier market for everyone—our customers, our dealers, and our business—even in these challenging times.”
But even the most optimistic spin can’t mask the reality: demand for new farm equipment is down, and the company is cutting jobs as a result. Deere announced layoffs affecting 238 workers at three factories: 115 at Harvester Works in East Moline, Illinois; 52 at Seeding and Cylinder in Moline, Illinois; and 71 at a foundry in Waterloo, Iowa. The affected employees were notified on August 15, and the layoffs will be implemented in the coming weeks.
In a statement, the company acknowledged the difficulties: “The struggling ag economy continues to impact orders for John Deere equipment. This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term.” Workers who lose their jobs aren’t left entirely out in the cold—Deere’s policy allows them to be recalled based on seniority, and they’re eligible for monetary benefits and continued healthcare coverage, subject to company rules.
Despite the downturn, Deere insists it’s not shying away from its commitment to American manufacturing. The company plans to invest nearly $20 billion over the next decade to upgrade and enhance its U.S. manufacturing facilities, aiming to keep its domestic footprint “strong, viable and competitive.” This comes on top of recent investments to open new facilities and expand or modernize others. It’s a long-term bet that the agricultural sector will rebound—and that when it does, Deere will be ready.
The struggles at Deere reflect a broader malaise in the U.S. agricultural sector. Lower commodity prices, rising input costs, and global trade uncertainties have all contributed to a tough environment for farmers and the companies that support them. And with new tariffs making imported goods more expensive and harder to obtain, the pain is being felt not just by farmers, but by consumers and businesses across the country.
What’s striking is how these two stories—one about international trade policy, the other about the domestic agricultural economy—are intertwined. Farmers, who rely on imported parts and equipment, now face higher costs and longer waits for essential items. Meanwhile, consumers, especially those with less disposable income, are hit with higher prices and fewer choices for goods ordered from abroad. It’s a perfect storm of policy changes and economic headwinds, and there’s no easy fix in sight.
As the Trump administration’s new tariff rules take effect and companies like Deere adapt to a changing landscape, the stakes couldn’t be higher. For now, patience—and perhaps a bit of luck—may be the only things that keep packages moving and factories humming.
