DE, AGCO, CNH Stocks Get A Boost From Citi After Trump Slashes Agri Equipment Tariffs – Firm Calls It ‘Incremental Positive’ For The Sector

• The proclamation also expands the existing 15% tariff category to include mobile industrial equipment, such as bulldozers and forklifts.
• Citi stated that for CNH Industrial and Agco Corp, the tailwind could be ‘slightly more material’ because both companies import more finished goods than Deere.
• According to Citi, the tariff cut could add $0.10 to $0.15 per share in earnings for Deere's fiscal 2026.

Shares of Deere & Co. (DE), CNH Industrial (CNH), and AGCO Corp. (AGCO) moved higher on Tuesday after President Trump signed a proclamation lowering the tariffs on agricultural equipment from 25% to 15% -- a move Citi called an ‘incremental positive’ for the farm machinery sector.

Citi stated that the tariff cut could add $0.10 to $0.15 per share in earnings to Deere's fiscal 2026, according to TheFly. For CNH Industrial and AGCO, the tailwind could be ‘slightly more material’ because both companies import more finished goods than Deere, Citi added.

At the time of writing, DE stock was up 5%, CNH stock jumped over 9%, and AGCO stock climbed 5% Tuesday morning.

The Tariff Cut On Agri Equipment

The White House announced that tariffs on agricultural equipment, including combines and harvesters, are being adjusted down to 15% from 25%. The proclamation also expands the existing 15% tariff category to include mobile industrial equipment, such as bulldozers and forklifts, when imported from trade-deal countries. 

According to the White House statement, the changes are temporary, lasting until Dec. 31, 2027, to encourage near-term investments that will ‘rebuild the Nation's industrial base.’

The proclamation also encourages foreign companies to use U.S. steel and aluminum by letting them qualify for a 10% duty rate, provided their capital equipment includes at least 85% U.S. melted and poured or smelted and cast steel or aluminum by weight.

The White House fact sheet stated that these tariffs are designed to give domestic producers and workers a fair shot against foreign competitors.

What Retail Thinks Of DE, AGCO, CNH

On Stocktwits, retail sentiment surrounding DE has improved to ‘neutral’ from ‘bearish’, while message volumes have remained in ‘normal’ territory over the past 24 hours.

For CNH, the retail sentiment has improved to ‘bullish’ from ‘neutral’ while message volumes increased to ‘high’ from ‘normal’ in the past 24 hours. For AGCO stock, the retail sentiment also improved to ‘bullish’ from ‘neutral’ while message volume stayed ‘normal’ in the past 24 hours.

One user on Stocktwits highlighted that the tariff cut shows the administration is not trying to ‘over-tighten’ costs for farmers and capex-heavy buyers.

https://stocktwits.com/PickAlpha/message/655058519

AGCO stock has gained over 11% year-to-date, while DE stock has climbed 22% and CNH is up 16%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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