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John Deere sees earnings slump amid U.S.-China trade war

In this image, the back end of a John Deere tractor plows through a field.
A John Deere combine harvesting rice in California's Sacramento Valley. Photo: Mardis Coers/Contributor via Getty Images

John Deere has lost its cautious optimism about the U.S.-China trade war amid sinking earnings and an uncertain demand for products, Bloomberg reports.

What's happening: "Ongoing concerns about export-market access, near-term demand for commodities such as soybeans, and a delayed planting season in much of North America are causing farmers to become much more cautious about making major purchases," John Deere CEO Sam Allen said in a statement to Bloomberg on Friday.

The backdrop: Some farmers are delaying equipment purchases to cope with the financial fallout of President Trump's trade war. U.S. farmers' personal income declined by an annualized $11.8 billion between January and March, crunching potential spending that could buoy John Deere.

Go deeper: Trump administration has paid farmers $8.52 billion in aid to offset trade war