Trump Vows 200% Tariff on John Deere Over Mexico Move

Former President Donald Trump issued a stern warning to American farm equipment manufacturer John Deere, threatening a 200% tariff on the company’s imports to the United States if it moves its manufacturing operations to Mexico. During a campaign event in Pennsylvania on September 23, Trump criticized the company's plans, aligning his stance with the protection of U.S. manufacturing jobs.

Trump’s remarks came in response to recent announcements by John Deere that it intends to shift some production, specifically skid steer manufacturing, to Mexico. This decision follows earlier reports of layoffs affecting over 1,800 employees in Illinois and Iowa, fueling concerns about job losses in the U.S. manufacturing sector. Trump, speaking to a crowd in western Pennsylvania, framed his position as a fight to protect American workers, emphasizing the potential damage to both U.S. jobs and the farming industry should Deere proceed with its move.

"If John Deere thinks they can move production to Mexico, make a product cheaper, and then sell it back to the U.S. without consequence, they're wrong," Trump declared. He vowed to impose the steep tariff on any machinery imported back to the U.S. from Mexico, stating that either the U.S. would generate substantial revenue through the tariffs, or John Deere would be forced to reconsider its plans. The former president highlighted that this approach would benefit American workers, forcing companies to either maintain production within the country or face significant financial penalties.

This rhetoric is in line with Trump's America First policies from his time in office, where he repeatedly threatened and sometimes imposed tariffs on companies that sought to relocate manufacturing abroad. His administration was known for targeting firms, including automakers, that intended to move operations to lower-cost countries while continuing to sell products in the U.S. market. The 2024 presidential hopeful's stance aims to appeal to blue-collar voters and farmers, groups that have historically been a core part of his support base.

Trump also used the opportunity to link his tariff proposal to broader concerns about foreign dependence, warning that U.S. agriculture could suffer under a potential Kamala Harris presidency. He suggested that under the Democratic nominee, energy costs would skyrocket, harming the farming sector. By contrast, Trump assured voters that his policies would lead to lower energy costs and stronger support for American industries.

John Deere has not issued a formal response to Trump’s comments, but the company has defended its long-term commitment to U.S. manufacturing in the past. Deere has invested billions into its American factories over the years and currently employs around 30,000 workers across multiple states. Despite the planned move of certain production lines to Mexico, Deere has cited its continued investment in the U.S. as evidence of its dedication to domestic production.

The move to Mexico, however, aligns with a broader trend among American manufacturers seeking to cut costs by relocating operations to countries with cheaper labor. Trump’s threat of tariffs, if implemented, could have significant consequences for both John Deere and the broader trade relationship between the U.S. and Mexico. Critics argue that such tariffs could increase costs for American farmers who rely on Deere’s equipment, further complicating the already difficult financial situation for many in the agricultural sector.

Trump's Pennsylvania event was intended to focus on broader agricultural issues, including concerns about foreign ownership of U.S. farmland, particularly by Chinese entities. However, his remarks on John Deere dominated the headlines, signaling a renewed focus on protecting American jobs as he ramps up his 2024 campaign efforts.

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