President Trump threatens a 200% tariff on John Deere imports if the company shifts production to Mexico.
At a Glance
- Former President Trump proposes a 200% tariff on John Deere if it moves production to Mexico.
- Announcement made at a policy roundtable in Smithton, Pennsylvania.
- Job losses expected in Iowa and Illinois as John Deere plans layoffs.
- Trump emphasizes the negative impact on U.S. farmers and manufacturers.
- Stocks of John Deere dropped 1.7% after Trump’s comments.
Trump Proposes 200% Tariff on John Deere Imports
In Smithton, Pennsylvania, former President Donald Trump announced his intention to impose a 200% tariff on John Deere imports if the company relocates production to Mexico. He made this assertion during a policy roundtable hosted by the Protecting America Initiative. The event featured discussions on the adverse effects that John Deere’s potential move and subsequent layoffs could have on American farmers and the manufacturing sector.
Trump criticized John Deere’s decision to move some of its manufacturing operations to Mexico, arguing that such a move exploits lower labor costs at the expense of American workers. He pointed out that John Deere has announced layoffs at its Iowa facilities due to rising operational costs and declining demand. A John Deere spokesperson suggested that while the company continues to invest in U.S. production, some operations must move to maintain efficiency.
Former President Donald Trump on Monday threatened John Deere with a 200% tariff if the agricultural manufacturer moves production to factories in Mexico.
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— CNBC (@CNBC) September 23, 2024
Impact on American Jobs and Economy
John Deere’s decision has already led to significant job losses, with 503 workers laid off in Illinois and 310 in Iowa. Trump contended that this move would jeopardize the livelihood of American farmers and those in the manufacturing industry. The former president has made tariffs a critical part of his economic policy, aimed at ensuring companies prioritize domestic production.
“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.
Officials from the Protecting America Initiative, a group dedicated to combating free-trade deals and outsourcing, hosted the event. They echoed Trump’s call to prevent the loss of American jobs. Farmers and manufacturers expressed concerns about losing their way of life and stressed the importance of preserving domestic production capabilities.
Reaction and Next Steps
Following Trump’s comments, John Deere’s stock fell by 1.7% in after-hours trading. The company has invested $2 billion in U.S. manufacturing plants since 2019 but insists that relocating some operations is essential for efficiency.
“They’ve announced a few days ago that they’re going to move a lot of their manufacturing business to Mexico,” Trump said at the policy roundtable in Smithton, Pennsylvania, hosted by the Protecting America Initiative.
Trump also threatened automakers with similar tariffs, urging them to maintain manufacturing in U.S. states such as Michigan. At the event, he highlighted the Biden administration’s economic policies and called for energizing domestic production to lower costs and counter China-subsidized businesses.
Future Policies and Elections
As the 2024 elections approach, both Trump and Vice President Kamala Harris are setting their sights on Pennsylvania, a key swing state. Harris’ campaign plans to address Trump’s previous policies on agriculture and trade during her upcoming visit. She has criticized Trump’s stance on early voting, energy policies, and trade deals (fortune.com).
Trump emphasized the need for protective tariffs to sustain American jobs and boost energy production, which he asserts will lower overall costs. These policies resonate with working-class voters, particularly those who have been adversely affected by free-trade agreements and outsourcing (fortune.com).
