“we expect a pre-tax tariff impact in fiscal year 2025 of just over $500 million should these tariff levels continue throughout the remainder of the fiscal year.”

In context

“ts to tariff levels announced in this past week. We're monitoring these developments closely while concurrently planning and executing mitigation strategies. Provide context on Deere's potential tariff exposure, we've provided a geographic breakdown of U.S. complete good and component sourcing in the appendix of today's slide deck. As John noted earlier, nearly 80% of U.S. complete good sales are from products built at our U.S. manufacturing facilities with over 75% of the components used at those facilities sourced from U.S. based suppliers. The majority of U.S. complete good sales sourced outside the U.S. are tied to mid-sized tractors and rolled building equipment from Europe. On the component side, our primary non-U.S. sourcing is from Mexico and Europe. As it relates to our forecast, we expect a pre-tax tariff impact in fiscal year 2025 of just over $500 million should these tariff levels continue throughout the remainder of the fiscal year. This forecast is based on the impact of tariffs in effect as of May 13th, including the reductions in reciprocal and retaliatory tariffs between China and the United States announced earlier this week. Using this baseline assumption as a starting point, we've expanded our guidance range to account for scenarios that may evolve as the year plays out. For context in the split by business unit, we would expect 40% of the cost to impact our construction forestry operations with about 35% hitting small Ag and turf and about 25% hitting production and precision lag. Josh Jepsen : Hey, this is Jepson. I'd like to quickly call out a few of the mitigation efforts we're taking to minimize the impact of tariffs on our customers, dealers, and Deer. Teams across the organization are working diligently”