Trump Cuts Ag Equipment Tariffs to 15%, Boosting Deere’s FY26 EPS by $0.10-$0.15
DE•President Trump’s proclamation cuts tariffs on agricultural and mobile industrial equipment from 25% to 15%, extending relief to combines, harvesters, bulldozers and forklifts through Dec. 31, 2027. Citi projects the lower rate could boost Deere & Co.’s fiscal 2026 earnings by $0.10 to $0.15 per share.
1. Tariff Cut Details
The policy reduces import duties on agricultural and mobile industrial equipment from 25% to 15%, extending lower rates to combines, harvesters, bulldozers and forklifts imported from trade-deal partners.
2. Earnings Impact on Deere
Analysts project the tariff reduction could add $0.10 to $0.15 per share to Deere & Co.’s fiscal 2026 earnings by lowering costs on imported components.
3. Peer Comparison
Deere imports more components than finished machinery, while CNH Industrial and AGCO import larger volumes of finished equipment and may see a slightly greater earnings tailwind.
4. Timeline and US Steel Incentive
The 15% rate applies through Dec. 31, 2027, and capital equipment containing at least 85% U.S. melted and poured steel or aluminum qualifies for a 10% duty rate.
