Former President Donald Trump on Monday threatened John Deere with a 200 per cent tariff if the agricultural manufacturer moved production to factories in Mexico according to a report by CNBC.
“They have 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.
“I’m just notifying John Deere right now: If you do that, we’re putting a 200 per cent 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.
John Deere has announced that it plans to shift production of some of its models to Mexico, a move that has resulted in layoffs at facilities in Iowa.
Brief history of John Deere
Deere & Company, doing business as John Deere, is an American corporation that manufactures agricultural machinery, heavy equipment, forestry machinery, diesel engines, and drivetrains (axles, transmissions, gearboxes) used in heavy equipment and lawn care equipment. It also provides financial services and other related activities.
Deere & Company is listed on the New York Stock Exchange under the symbol DE. Further, it has used various logos incorporating a leaping deer for over 155 years. It is headquartered in Moline, Illinois. It was ranked 84th in the 2022 Fortune 500 list of the largest United States corporations. Its tractor series includes D series, E series, Specialty Tractors, Super Heavy Duty Tractors, and JDLink.
Donald Trump continued with his criticism of the company
“It’s hurting our farmers. It’s hurting our manufacturing,” Trump said Monday.
Reached by CNBC for comment, a John Deere spokesperson pointed out a page on its website titled “John Deere’s Commitment to US Manufacturing,” where it touts its investments in American factories and workers.
The page also said, “In order to position our US factories to undertake these highly value-additive activities it is sometimes necessary to move less complex operations, such as cab assembly, to other locations.”
Monday appeared to be the first time Trump had singled out John Deere. The former president’s comments appeared to be off the cuff, prompted only by the John Deere tractors that were set up as the backdrop of the event.
As of 6 pm ET, shares of Deere were down 1.7 per cent in after-hours trading. Trump made the threat shortly after the closing bell. The former president made similar threats Monday to automakers that manufacture cars in Mexico.
“We’re going to put big tariffs on those cars that are coming in here at 100[ per cent] to 200 per cent, and they’re no longer going to be competitive,” he said, “so you better stay in Michigan.”