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Layoffs follow income and sales declines across Iowa and Illinois plants.

Deere will lay off 238 employees across factories in Waterloo, Iowa, and Moline and East Moline, Illinois. The move follows weaker financial results and higher costs that have reshaped the company’s 2025 outlook.

Deere reported a 26% drop in net income alongside a 9% decline in sales so far this year. Management linked the downturn to softer commodity prices that have tempered producer purchases and to a sharp rise in tariff expenses.

“Tariff costs in the quarter were approximately $200 million, which brings us to roughly $300 million in tariff expense year to date,” said Josh Beal, Director of Investor Relations at Deere.

The company now expects tariff costs to reach $600 million in 2025, up from a prior forecast of $500 million. Those costs are part of a broader trade backdrop. Since April, the U.S. has imposed wide-ranging tariffs of 10%–50% on most imports, with higher rates for dozens of countries and industries. The average tariff rate is now estimated at 18.6%, the highest since 1933.

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