Former President Donald Trump threatens John Deere with a 200% tariff if the company moves production to Mexico, sparking concerns about American jobs and manufacturing.
At a Glance
- Trump announced a potential 200% tariff on John Deere products if manufacturing moves to Mexico
- John Deere plans to lay off 813 workers in Illinois and Iowa, citing rising costs and declining demand
- The announcement caused John Deere’s stock to fall 1.7% in after-hours trading
- Trump’s stance aims to protect U.S. manufacturing jobs and appeal to working-class voters
- The move highlights ongoing concerns about outsourcing and the decline of small family farms
Trump’s Bold Stance on American Manufacturing
Former President Donald Trump has once again thrust himself into the spotlight of American manufacturing with a stark warning to John Deere. At a policy roundtable in Smithton, Pennsylvania, Trump vowed to impose a hefty 200% tariff on John Deere products if the company shifts its manufacturing operations to Mexico. This announcement comes in response to John Deere’s recent plans to lay off 503 workers in Illinois and 310 in Iowa, raising concerns about potential production shifts south of the border.
Trump’s proposed policy aims to safeguard America’s industrial backbone and preserve the livelihoods of hardworking Americans in the heartland. The former president’s stance reflects his long-standing commitment to keeping manufacturing jobs within U.S. borders, a position that resonates strongly with his base and many working-class voters across the nation.
Trump threatens '200% tariff' if John Deere moves production to Mexico https://t.co/RsIQoc4slt
— CNBC (@CNBC) September 23, 2024
Impact on John Deere and the Market
The announcement sent ripples through the financial markets, causing John Deere’s stock to fall 1.7% in after-hours trading. This immediate reaction underscores the weight of Trump’s words and the potential consequences for companies considering offshore manufacturing. Trump’s threat extends beyond John Deere, as he also warned automakers of similar tariffs if they contemplate moving production to Mexico, urging them to “stay in Michigan.”
“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.
In response to Trump’s comments, a John Deere spokesperson highlighted the company’s significant investments in American factories and workers, noting that some operations need to be moved to other locations for efficiency. The company has invested $2 billion in U.S. manufacturing plants since 2019, demonstrating its commitment to domestic production despite the recent layoffs.
Broader Implications for American Agriculture
The event in Pennsylvania shed light on broader concerns within the agricultural sector. Farmers and manufacturers expressed worries about losing their way of life, with discussions centering on the decline of small family farms despite overall production being up. The roundtable also touched on the issue of foreign ownership of U.S. farmland, with China holding nearly 250,000 acres, although this represents less than 1% of foreign-held acres.
“They’ve announced a few days ago that they’re going to move a lot of their manufacturing business to Mexico,” the Republican nominee said at a policy roundtable in Smithton, Pennsylvania, hosted by the Protecting America Initiative.
Trump emphasized the need for tariffs to counter Chinese-subsidized businesses and protect American industries. He also stressed the importance of boosting domestic energy production to lower costs for farmers and manufacturers, acknowledging the energy dependency of the agricultural sector.
Trump threatens John Deere with 200% tariffs if production moves to Mexico
Trump also says he will press China to buy US farm products if he is elected #Election2024 #grain #soy #corn https://t.co/J8eC1TKZCR
— Tom Polansek (@tpolansek) September 23, 2024
Political Implications and Voter Appeal
Trump’s stance on manufacturing and tariffs is clearly aimed at appealing to working-class voters opposed to free-trade deals and outsourcing. This approach has been a cornerstone of his political strategy, resonating with many in the industrial heartland who feel left behind by globalization. The event in Pennsylvania, a crucial swing state, underscores the political significance of these economic policies in the upcoming election.
“If they want to build in the United States, there’s no tariff.” Trump said.
As the 2024 election approaches, Trump’s aggressive stance on protecting American jobs and manufacturing is likely to remain a central theme of his campaign. The proposed 200% tariff on John Deere, should they move production to Mexico, serves as a stark warning to other companies considering similar moves and reinforces Trump’s image as a defender of American industry.
Sources:
- Trump threatens ’200% tariff’ if John Deere moves production to Mexico
- Trump threatens tractor maker John Deere with 200% import tariff if it moves manufacturing to Mexico
- Trump threatens John Deere with 200% tariffs if production moves to Mexico
- Trump threatens Deere with 200% tariff over production move to Mexico
- DTN Ag Policy Blog
- Trump threatens 200% tariff on John Deere equipment made in Mexico
