Price instability and a break with China hits American companies, and local manufacturer John Deere is no exception

The manufacturer of Moline machines, in Moline Illumerie, based on Ill. This is partly due to instability linked to prices and an economic struggle with China. Last month, the company declared that it would dismiss 238 production employees in Illinois and Iowa, citing “a decrease in demand and volumes of less orders”.

In the third quarter, the company’s net profit fell from a quarter compared to the same period last year and its world’s sales and revenues dropped 9% to $ 3.9 billion, compared to $ 5.8 billion last year. The company has also reduced its directives for its annual net profit until the end of the year.

In the latest call on the results of the company, the director of investors, Josh Beale, said that there were “optimistic pockets” in John Deere’s activities, but that added customers may feel the prices and instability.

“Given the difficult fundamentals of the industry and the evolution of the global commercial environment and the constantly evolving expectations of interest rates, our customers operate on increasingly dynamic markets, which naturally stimulates caution by considering capital purchases,” said Beale.

Agriculture is a constantly evolving industry. The high prices of crops mean that farmers can consider buying new tractors and new equipment, but if not, they can buy used equipment or hold a big purchase. New tractors can cost tens of thousands of dollars according to their capacity, and many farmers are counting on credit for these purchases. The prices are low for the two main American crops: corn and soy. Corn sells 50% less than what it did in 2022, while soy prices are down 40%, THE New York Times reported.

John Deere’s clients, apart from the confusion of prices, are also faced with opposite winds from an economic battle with China. In response to Trump’s pricing escalations, the second world economy retaliated with prices on American soybeans, of which last year, it imported $ 13 billion – or almost equal to the market capitalization of the competitor of John Deere Kubota. Soy imports in China are down 51% this year, and the country has made no advanced soybean purchases for the coming harvest, the NOW reported.

If John Deere customers make less equipment purchases, the reduction will last the national manufacturing of the company, which represents 80% of its American sales and a quarter of its international sales.

John Deere did not immediately respond to FortuneComment request.

However, there can be a silver lining to Trump’s policies for John Deere. The company could benefit from changes in bonuses in bonuses in the “Big Beautiful Bill”, adopted in July, which gives farmers a tax relief on equipment purchases.

Due to its robust interior manufacturing, the company can also be more immune to foreign import prices than the competitors Kubota, Fendt and Mahindra, who make their products more internationally.

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