Higher Tariffs Costing Some Companies Hundreds of Millions They Say

The Cost of Tariffs: John Deere Expects to Lose Hundreds of Millions

They put off buying a new combine. They decided that a tractor can wait another year. Those decisions by farmland owners and operators have already stalled the market for companies like John Deere. Low commodity prices for the past few years have reduced farm income. That has led to a series of layoffs – thousands of positions – as the company adjusts to the struggling agriculture market. Higher tariffs would now cost the company hundreds of millions of dollars, the company announced.

John Deere told investors that President Donald Trump’s higher tariffs policies could cost the company $600 million this fiscal year.

“As stated on our most recent earnings call, the struggling ag economy continues to impact orders for John Deere equipment,” Deere told CNBC in a statement. “This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term.”

Conagra Brands Plans for Significant Tariff Charges  

The economic reality of raising tariffs is also impacting Conagra Brands. The company said that it expects higher prices for ingredients like eggs and cocoa. President Trump’s global trade war is expected to add another $200 million in costs for the company, Conagra executives said.

Steel and aluminum are among the items that have become more expensive because of higher tariffs. Conagra said that higher tariffs were responsible for an additional 3% cost on its goods.

Organic sales have also fallen for the company. Agriculture producers who specialize in organics have been dealing with a challenging environment as some consumers opt for cheaper options considering inflation that has remained above the Federal Reserve’s preferred 2% throughout all of 2025.