Citi sees agriculture manufacturer margin risk from Europe tariffs

Citi tells investors to monitor potential margin risk for the agriculture manufacturers after President Trump announced increasing tariffs on European allies until the U.S. is allowed to buy Greenland. Agco (AGCO) faces the most risk relative to CNH Industrial (CNH) and Deere (DE) impact given its relatively higher percentage of imports from Europe. Citi estimates that 25% of Agco’s U.S. sales are sourced from Europe. CNH has started 13% of its finished goods sold in the U.S. are imported from Europe, the analyst tells investors in a research note. The firm believes Deere, while in a better position than peers, still has some notable exposure, primarily through its Wirtgen business in Germany. Agco shares are down 1% to $109.78 in early trading while CNH is down 3% and Deere is down less than 1%.