Deere & Co. expects tariff costs to rise toward $1 billion

Deere & Co. reported receiving $110 million in tariff refunds during its fiscal third quarter, bringing its total reimbursements for previously defunct levies to $382 million. These refunds follow the Supreme Court's invalidation of certain country-specific tariffs implemented in 2025.

Despite these windfalls, the heavy equipment manufacturer expects a significant increase in tariff expenses. While the company expects to pay roughly $750 million in tariffs this year, executives projected a run rate closer to $1 billion for the next fiscal year. The company noted that while 80% of its products are manufactured in the U.S., a dynamic inflationary environment persists due to tariffs and higher oil prices.

In related financial news, Osterweis Capital Management Inc. disclosed the acquisition of a new stake in Deere & Company during the second quarter, purchasing 43,068 shares valued at approximately $27.3 million. Several other institutional investors also reported new or adjusted positions in the company during recent quarters.