Agricultural equipment manufacturer John Deere (NYSE: DE) announced layoffs affecting more than 200 workers across three Midwestern facilities this week, citing customer uncertainty over President Donald Trump’s expanding tariff policies as a primary factor in declining sales.
The Moline-based company will terminate 115 employees at its East Moline, Illinois facility later this month, followed by 52 workers in Moline, Illinois and 71 employees in Waterloo, Iowa next month, according to company statements and local media reports.
“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. “This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term.”
During the company’s third-quarter earnings call, John Deere executives directly linked the sales slowdown to tariff uncertainty. “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,” said Cory Reed, president of John Deere’s Worldwide Agriculture and Turf Division.
The company estimates tariffs have already cost it $300 million this year, with Josh Beal, the company’s director of investor relations, forecasting a full-year impact of nearly $600 million.
John Deere joins a growing list of major manufacturers announcing layoffs linked to Trump’s tariff policies, which have imposed duties ranging from 10% to over 100% on goods from dozens of countries.
Stellantis, maker of Chrysler, Jeep and Dodge vehicles, laid off 370 workers in Kokomo, Indiana, and announced thousands of additional cuts across plants in the U.S., Canada and Mexico. The company said it was taking “immediate actions” due to the tariffs.
Mack Trucks plans to eliminate between 250-350 jobs at its Pennsylvania facility and up to 100 more in Maryland over the next 90 days, citing “market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs.”
Gaming giant Nintendo delayed pre-orders for its highly anticipated Switch 2 console, originally scheduled for April 9, “in order to assess the potential impact of tariffs and evolving market conditions.”
A survey of CEOs by CNBC found that 37% expect to cut jobs this year, with 82% anticipating “resurgent inflation” as companies pass tariff costs to consumers through price increases of 5% to 20%.
“Heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs,” said Kimberly Pupillo, a Mack Trucks spokesperson.
Related: Bankruptcy Cases Surge to Over 500,000, Highest Since 2010
During Trump’s first term, economists estimated his tariffs cost approximately 245,000 American jobs. Recent federal data shows the manufacturing sector has already lost 14,000 net jobs in May and June despite the administration’s promises that tariffs would boost domestic production.
The layoffs particularly affect Rust Belt communities that Trump has promised to revitalize through trade protections, raising questions about the policy’s effectiveness in supporting American workers.
Trump has defended the tariffs as necessary to address trade deficits, particularly with China, despite economic consensus that such policies typically increase costs for consumers and businesses while reducing employment in import-dependent industries.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.