Trump threatens a staggering 200% tariff on John Deere if the company’s manufacturing operations move to Mexico.
At a Glance
- Former President Trump threatened John Deere with a 200% tariff if they move production to Mexico.
- Announced at a policy roundtable in Smithton, Pennsylvania.
- Moving production outside the U.S. would result in layoffs at Iowa facilities, affecting American farmers and manufacturing.
- John Deere emphasizes ongoing investments in American factories despite necessary operational shifts.
- Trump highlights the harm such outsourcing could bring to U.S. workers, emphasizing economic stability.
Trump’s Strong Message to John Deere
During a policy roundtable in Smithton, Pennsylvania, former President Donald Trump addressed the entourage with two iconic John Deere tractors as a backdrop. The event, hosted by the Protecting America Initiative, saw Trump issue a stern warning to John Deere: a 200% tariff if the company shifts any of its manufacturing operations to Mexico.
Trump emphasized the detrimental impact such a move could have on U.S. farm operations and the broader manufacturing workforce. The announcement came just days after John Deere revealed its plans to shift some production to Mexico, a decision that would lead to significant layoffs at its facilities in Iowa and Illinois.
Trump threatens '200% tariff' if John Deere moves production to Mexico https://t.co/RsIQoc4slt
— CNBC (@CNBC) September 23, 2024
Protecting American Jobs
In his address, Trump underscored the broader implications of John Deere’s plans. He asserted the necessity of protecting American jobs from being outsourced to exploit cheaper labor markets, which undermines both local economies and national stability. “They’ve announced a few days ago that they’re going to move a lot of their manufacturing business to Mexico,” Trump pointed out, highlighting the urgency of the issue.
“I’m just notifying John Deere right now: If you do that, we’re putting a 200% tariff on everything that you want to sell into the United States,” said Trump, who has made tariffs a key focus of his campaign’s economic policy.
Some participants voiced strong concerns about the potential move, with local farmers and manufacturers expressing fears about losing their livelihoods. Their presence underscored the real-life impact of such corporate decisions on everyday Americans.
John Deere announced in June it was moving some manufacturing to Mexico and working to acquire land there for a new factory. Trump threatened the firm with a 200% tariff should he win back the presidency and it opted to export manufacturing to Mexico.https://t.co/D6u6rUjBRR
— News Talk 830 WCCO (@wccoradio) September 23, 2024
John Deere’s Stance
A spokesperson for John Deere attempted to calm the waters by noting the company’s considerable investments in American factories and workers. Deere has committed $2 billion to its U.S. manufacturing plants since 2019. However, they also emphasized that some operational shifts are necessary to maintain efficiency and competitiveness in the global market.
Despite these assurances, the company’s decision to move part of its manufacturing to Mexico has led to immediate market repercussions. Shares of Deere fell 1.7% in after-hours trading following Trump’s comments, reflecting investor anxiety around the potential imposition of tariffs.
Trump also issued a warning to other automakers contemplating similar moves to Mexico, emphasizing that such decisions would not come without severe economic consequences. “We’re going to put big tariffs on those cars that are coming in here at 100[%] to 200%, and they’re no longer going to be competitive,” he said, “so you better stay in Michigan.”
Sources:
- Trump threatens ’200% tariff’ if John Deere moves production to Mexico
- Trump threatens John Deere with 200% tariffs if production moves to Mexico
- Donald Trump’s John Deere Threat Has a Problem: the USMCA Act He Signed
