Mass Layoffs at John Deere Follow Depressed Sales Caused by Trump Tariffs
"Equipment manufacturers like John Deere have lost millions, but let's remember that working people are hit hardest by the president's disastrous economic policies," said one lawmaker.
US President Donald Trump has pitched his tariffs on foreign goods as a way to bring more manufacturing jobs back into the United States.
However, it now appears as though the tariffs are hurting the manufacturing jobs that are already here.
As reported by Des Moines Register, iconic American machinery company John Deere announced on Monday that it is laying off 71 workers in Waterloo, Iowa, as well as 115 people in East Moline, Illinois, and 52 workers in Moline, Illinois. The paper noted that John Deere has laid off more than 2,000 employees since April 2024.
In its announcement of the layoffs, the company said that "the struggling [agriculture] economy continues to impact orders" for its equipment.
"This is a challenging time for many farmers, growers, and producers, and directly impacts our business in the near term," the company emphasized.
According to The New Republic, Cory Reed, president of John Deere's Worldwide Agriculture and Turf Division, said during the company's most recent earnings call that the uncertainty surrounding Trump's tariffs has led to many farmers putting off investments in farm equipment.
"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," he explained.
Josh Beal, John Deere's director of investor relations, similarly said that "the primary drivers" for the company's negative outlook from the prior quarter "are increased tariff rates on Europe, India, and steel and aluminum."
The news of the layoffs drew a scathing rebuke from Nathan Sage, an Iowa Democrat running for the US Senate to unseat Sen. Joni Ernst (R-Iowa), who has praised the president's tariff policies.
"John Deere is once again laying off Iowans—a clear sign economic uncertainty hits the working class hardest, not the CEOs at the top," he wrote in a post on X. "Cheered on by Joni Ernst, Republicans in Washington want to play games with tariffs and give tax cuts to billionaires while Iowa families continue to struggle. It's time to stop protecting the top 1% and fight for the working people who keep our economy strong."
Rep. Jim McGovern (D-Mass.) also ripped Trump's trade policies for hurting blue-collar jobs.
"Because of Trump's tariffs, farmers can't afford to buy what they need to make a living," he said. "Equipment manufacturers like John Deere have lost millions, but let's remember that working people are hit hardest by the president's disastrous economic policies. Tired of 'winning' yet?"
John Deere is not the only big-name American manufacturer to be harmed by the Trump tariffs, as all three of the country's major auto manufacturers in recent months have announced they expect to take significant financial hits from them.
Ford last month said that its profit could plunge by up to 36% this year as it expects to take a $2 billion hit from the president's tariffs on key inputs such as steel and aluminum, as well as taxes on car components manufactured in Canada and Mexico.
General Motors last month also cited the Trump tariffs as a major reason why its profits fell by $3 billion the previous quarter. Making matters worse, GM said that the impact of the tariffs would be even more significant in the coming quarter when its profits could tumble by as much as $5 billion.
GM's warning came shortly after Jeep manufacturer Stellantis projected that the Trump tariffs would directly lead to $350 million in losses in the first half of 2025.
