Make tariffs great again.
Deere & Co. (DE - Get Report) and other farm equipment stocks soared on Tuesday, July 24, after Politico reported that President Donald Trump's administration announced that it will pledge $12 billion in aid to farmers to help offset his tariffs, which have been hurting the farming industry due to retaliation against U.S. meats, soybeans and fruits.
The report follows a tweet from the president, which claims that "Tariffs are the greatest!"
Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It's as simple as that -- and everybody's talking! Remember, we are the "piggy bank" that's being robbed. All will be Great!— Donald J. Trump (@realDonaldTrump) July 24, 2018
Deere was up more than 3% and CNH Industrial N.V. (CNHI - Get Report) was up nearly 4%. Titan International Inc. (TWI - Get Report) fell slightly while AGCO Corp. (AGCO - Get Report) was up nearly 1%.
However, the escalating trade war with China and the tensions with the EU and Canada have spooked other American companies, such as Harley Davidson Inc. (HOG - Get Report) , which announced during its earnings call on Tuesday that costs could increase by $55 million because of the tariffs.
The Department of Agriculture made its formal announcement about the farmers aid Tuesday afternoon.