Deere Defends Prices After Trump Pushes for Cuts
Manufacturer Cites Tech Upgrades and Tariff Pressures on Costs
Key Takeaways:
- Deere said it is helping U.S. farmers substantially cut costs after President Donald Trump urged tractor makers to reduce prices.
- The company cited automation that lowers labor and chemical expenses amid rising equipment costs driven by COVID-19 disruptions, high-tech features and metal tariffs.
- Deere issued the statement as Trump unveiled a $12 billion farm aid package and its shares fluctuated following a 1.8% drop.
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Deere & Co. said it is helping U.S. farmers “substantially” cut costs, after President Donald Trump pressured farm-equipment manufacturers to drop prices for tractors.
The world’s biggest farm machinery maker said in a statement to Bloomberg that it “has kept focus on supporting our customers and helping them build for the long haul.”
The comment comes after Trump said Dec. 8 that Deere and other tractor manufactures are “going to have to reduce their prices because farming equipment has gotten too expensive.”
“A lot of the reason is because they put these environmental excesses on the equipment, which don’t do a damn thing except make it complicated,” Trump said.
He delivered the comments at the White House amid an unveiling of the administration’s$12 billion aid packagefor farmers hurt by his tariff regime and low crop prices. At the same time, Deere was wrapping up its annual investor day in New York.
“We are doing all we can to help U.S. farmers reduce input costs,” Deere said. The company’s latest machines are packed with automation, which help reduce expenses for labor and weed-killing chemicals.
Farm machinery costs started surging around the COVID-19 supply-chain disruptions, while increasingly high-tech options such as satellite connectivity have also raised prices. Import tariffs on steel and aluminum have pushed up costs for U.S. manufactures.
Deere shares fluctuated between gains and losses Dec. 9, after dropping 1.8% in the previous session.
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