It looks like someone forgot to tell John Deere that tariffs are a win/win proposition. Considering that companies like Deere are a perfect example of what most people would consider heavy industry, what’s the point of burdening them with extra costs?
Deere & Co on Wednesday flagged a bigger hit from tariffs in 2026 and forecast its annual profit below estimates on the back of weaker margins on large tractors, sending the farm-equipment maker’s shares down 5%.
Caterpillar didn’t get the memo either.
Caterpillar now expects a tariff hit of $1.5 billion to $1.8 billion this year, up from its prior forecast of up to $1.5 billion.
The point of Tariffs is to provide an incentive for local production. Think of the 1.5 billion listed here as a cost to caterpillar as an $1.5 billion I incentive for caterpillar to have parts made in the United States.
This is one reason the liberal federal government’s actions are so insane – under the US MCA agreement those parts would be tariff free if made in Ontario, but now Those Ontario workers are going to lose their jobs.
That is absolutely correct. John Deere made over 200 billion and Caterpillar made over 65 billion in 2025.
No company in history has ever made 200 billion. The most profitable company in the world is Saudi Aramco, at about 120 billion.
So you know better than Bloomberg?
There’s revenue (sales) and there’s net income (revenue minus expenses). Yahoo reports Deere’s net income in the quarter just ended at $1.065 billion. $1.5B in tariffs would hurt – a lot.
“The point of Tariffs is to provide an incentive for local production. ”
Yes, that and levelling the playing field by matching any existing tariffs being imposed on us. Before Donald Trump started implementing countervailing tariffs, no one knew about all the unfair tariffs being imposed on American-made goods and services by nations all over the world. Trump imposed tariffs on *over 100* nations, and within a week most of them had come to the table to negotiate.
Every other country has a reasonable trade deal with the US that preserves their access to the market at the cost of about 10% tariffs. John Deere and Caterpillar are being sacrificed to safeguard the wealth of a bunch of Quebec dairy and egg farmers.
L – How does most every country in the world manage to negotiate a 10% tariff deal, but the Liberal P.M. “Marxist Carnage” has not and claims not to care? First. admitting that he doesn’t care. That’s is the first time, he’s actually told the truth.
Proven by his actions, as a globalist, the idea that a political leader’s duty is to serve his people and their nation-state. Neither concepts have any meaning in his world view.
There is significant damage to Canadian businesses simply because they can’t make a business plan or forecast without the tariff number. For foreign owned or controlled businesses, Canadians are replaceable and labour rates continue to drop to that of a post industrial society. One where individuals own their own homes and businesses, is only a fading memory.
That’s just the excuse. The objective is to ensure a Chinese communist toe-hold on the North American continent. Quebec’s farmers are to be expropriated, just like any other entrepreneur in North America who isn’t a servant of the CCP.
Correction:
The whole country is being sacrificed to safeguard the wealth and power of a bunch Quebec elites.
I propose an alternate explanation: The recent elections have been based on fear. Harper is mean, nasty, racist, sexist and will ban abortion – Trudeau is sunny days.
Sheer is mean, nasty, racist, sexist, transphobic, will ban abortion and will destroy the climate – Trudeau will save us.
O’Toole is mean, nasty, racist, sexist, transphobic, will ban abortion will destroy the climate and covid will kill us all – Trudeau will save us.
Pierre is Trump, Trump, Trump be afraid, be very afraid (the rest was unnecessary) – Carney will save us
Carney is deliberately extending the “tariff crisis” so that he has a fear campaign in place for when the minority collapses.
Prove me wrong.
U.S. President Donald Trump’s sweeping tariffs have impacted companies across sectors, especially manufacturing and industrial firms that rely on imported raw materials.
________________________
Imported raw materials. Steel and aluminum mostly. Which gives companies like John Deere a choice. They can proceed with the status quo, or look to the increasing steel and aluminum production domestically. That, btw, is why before the tariffs hit, a deal was brokered with Nippon Steel to manufacture in the US on an unprecedented level. It’s starting to ramp up.
Yep, that’s how tariffs work alright.
The US has increased the cost of manufacturing by taxing the import of many of its raw materials. This in turn will make its products more expensive and thus less competitive in the global marketplace.
The US can respond by increasing its production of steel and aluminium, but that will take up to a decade, and they will probably never be able to match the low cost of aluminium from Quebec that the rest of the world has access to. If a company wanted to build products to be sold outside of the US, the US is the last place they would locate the factory.
Here’s how a world without tariffs works!
You can buy a much cheaper tractor from Mahindra, Kubota, TAFE, LS tractor …
https://www.tractortaishan.com/the-most-affordable-tractor-manufacturers-in-2024/
Too bad CAT and Deere can’t compete. Oh well. Import cheap crap from India and the orient. The Amazon effect of the tractor world.
Tariffs exacerbate, not reduce, that problem by making it difficult to reduce the price of production in the high-tariff countries.
“Tariffs exacerbate, not reduce, that problem by making it difficult to reduce the price of production in the high-tariff countries.”
By demanding that tariffs fix the problem overnight, you prove that you don’t have the faintest idea how they are actually designed to work. THINK before you post….your knee-jerk reactions here are just embarrassing you.
Tariffs can’t fix the problem at all, overnight or overdecade. Even if the US manages to domesticate steel and aluminium production, their costs will still be higher than for a Canadian manufacturer (say) who can buy raw materials at the best prices from around the world, unfettered by these taxes.
Thank you for admitting you’re addicted to cheap crap made overseas. Tariffs offset their slave priced products and complete lack of government regulation.
Here’s where I note that I am dedicated aficionado of McInstosh audio equipment … Made in the USA – hand crafted always since inception in 1949. Yes, it’s more expensive than cheap ChiCom crap. But it lasts forever and holds its value in a vibrant resale market. Quality never goes out of style.
https://www.mcintoshlabs.com/
Which is why my car was built in Hiroshima.
For you, tariffs are a way to block poorly made products. Obviously this is not Trump’s motive, as has has not mentioned this. Further, he has implemented tariffs against Japan and the EU, hardly makers of third-world crap.
Repatriating US manufacturing is a national security issue no just a cheap goods issue. If you don’t have the ability to switch from domestic production to military production….you’ll loose the next war
National security issue my furry butt. Having Canada provide much of the US’s aluminium in no way undermines America’s security.
I’d love to carve an X in your furry butt, but that would just x-ass-erbate things…
Exactly.
Though keep in mind those tractors will only be cheap for the globalists who would take over America’s farmlamd after they finally succeeded in driving American farmers off their land.
If the globalists had their way, nothing would be cheap amd plentiful for normal Americans but the synthetic opiates with which they would be encouraged to kill themselves, being considered no longer useful as wage-slaves or cannon fodder.
The globalists don’t want to do away with Trump. They want to do away with Western civilization and replace it with something more to their liking. Trump’s just in the way.
The point is to encourage them to source their raw materials in the United States, not from satellite states of Red China.
If they can’t do that and stay in business, there’s something more deeply wrong with their business model than the price of their raw materials.
Now would be a good time to see how much of Deere’s and Caterpillar’s middle management is made up of top brass’s “diverse” mistresses and rent-boys whose few duties that actually add value could be replaced by AI quite easily, and whose termination would be greeted with relief by shareholders.
Canada doesn’t source it’s raw materials for aluminum in Canada, it gets it from countries that produce it. The US can import the bauxite and smelt if themselves, and their electricity, the other main input is cheaper than ours and getting cheaper without the climate nonsense.
The economics of aluminium smelting is driven by the cost of electricity.
Quebec’s advantage is not that it has bauxite. It’s that it has cheap, abundent electricity, just as Kitimat has.
Ahh, but aluminum smelting is a ‘messy’ process.. lots of co2 and fluorocarbon waste.. How long before ‘net-zero’ comes for Canadian smelters?
The amount of CO2 production is primarily dependent on how the electricity is generated. Quebec’s come from hydroelectric.