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