Deere & Co. Stocks Plummet Amid Trump's Tariff Threats on Imported Food Products

The agricultural sector is bracing for impact as President Donald Trump threatens to impose tariffs on imported food products, sending farm stocks, including those of Deere & Co., into a tailspin. The company's shares have plummeted in recent days, reflecting the uncertainty and concern among farmers and investors alike.

Trump's latest tariff threats come as no surprise to the agricultural community, which has been grappling with the fallout from previous trade wars. In 2018, a trade war with China led to retaliatory tariffs that hit American farmers hard, with the agriculture industry losing $26 billion over two years. Soybean, sorghum, and pork producers were among the hardest hit, and the U.S. government ended up spending $23 billion to compensate farmers (USDA, 2025).

This time around, farmers are worried that retaliatory tariffs from Canada and Mexico will be even more devastating. Marc Busch, a professor at Georgetown's School of Foreign Service, warns that "agriculture took the brunt of retaliatory tariffs by China last time, and certainly agriculture is going to be the main target of today’s retaliatory strikes" (Busch, 2025). With the U.S. exporting $83 billion in agricultural products to Canada, China, and Mexico last year, the potential impact on farm stocks and agricultural exports is significant.

Farmers and investors are concerned about the potential reduction in exports and lower prices for agricultural products that could result from retaliatory tariffs. Additionally, the uncertainty surrounding the Trump administration's trade policies and the potential for further tariffs is weighing on the market. The U.S. government's ability to provide assistance to affected farmers is also in question, as the Commodity Credit Corporation is running low on funding (Baumgarten, 2025).

Despite the challenges facing the agricultural sector, there are potential strategies that farmers and investors can consider to mitigate the impact of trade wars. Diversifying markets and finding new opportunities can help farmers reduce their dependence on international markets and lower their vulnerability to retaliatory tariffs. Additionally, investing in technologies and innovations that can improve efficiency and productivity can help farmers weather the storm.

In conclusion, the agricultural sector is facing significant challenges as President Trump threatens to impose tariffs on imported food products. Farm stocks, including those of Deere & Co., have plummeted in response to the uncertainty and concern among farmers and investors. However, by diversifying markets and investing in technologies and innovations, farmers and investors can work to mitigate the impact of trade wars and position themselves for long-term success.