At an campaign event with Pennsylvania farmers, former President Donald Trump issued a stark warning to John Deere, one of the leading machinery manufacturers. Trump vowed to impose a 200% tariff on the company if they chose to move some of their business operations to Mexico. Trump’s strong statement came in response to recent announcements made by the agricultural equipment giant.
Trump’s Message to John Deere
During the event, Trump addressed the crowd, saying, “I just noticed behind me John Deere tractors; I know a lot about John Deere.” He continued to share his concerns with the audience, noting that John Deere had recently revealed plans to transfer a significant portion of its manufacturing to Mexico.
“I am just notifying John Deere right now that if you do that, we are putting a 200% tariff on everything you want to sell into the United States,” he declared, making it clear that he was willing to take drastic action to prevent companies from outsourcing jobs and production.
Extending the 200% Tariff Threat Beyond Automakers
Previously, Trump has threatened automakers like Ford and GM with similar tariffs if they moved their production to Mexico. However, this seems to be the first time he has extended this threat to an agricultural equipment manufacturer like John Deere. The development indicates Trump’s concern about American businesses shifting jobs overseas, particularly in industries vital to U.S. farmers and workers.
Impact on Workers and U.S.-China Trade
Earlier this year, John Deere announced layoffs impacting thousands of workers in Iowa and Illinois. The decision, which included plans to increase production capacity in Mexico, sparked frustration among employees and political leaders alike.
The Hill continues:
John Deere did not immediately respond to a request for comment about Trump’s tariff threats.
Trump has leaned on tariffs as something of a cure-all as he pitches his economic vision for a second term. He has said repeatedly he would impose tariffs on all imported goods; he has threatened to use tariffs to force U.S. companies to base manufacturing domestically, and he suggested the use of tariffs could help bring down the cost of child care, a comment that drew criticism from Democrats.
Experts have warned that tariffs would lead to an increase in inflation, with companies passing on additional costs to consumers. Trump rejected that analysis Monday, and he signaled he would push for tariffs even if Congress did not approve of them.
“I don’t need them. I don’t need Congress, but they’ll approve it,” he said. “I’ll have the right to impose them myself if they don’t. I’d rather get their support.”
In addition to his comments about John Deere, Trump reiterated his promise to hold Chinese President Xi Jinping accountable for a previous agreement to buy $50 billion worth of U.S. agricultural products.
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A local company, John Crane Mfg., moved production from Crystal Lake, IL to Mexico for “cheaper” manufacturing costs. They produce “O” rings, seals, gaskets, etc. After 2 -3 years, they shut down the Mexican plant and moved back, as they couldn’t afford the problems. The production went from about a .2 % (two TENTHS PERCENT) at Crystal Lake to over 80% REJECT RATE in Mexico ! No company can withstand that. When they moved back to Crystal Lake, (same building,) they re-hired the people that were laid off, and most came back, but with a LARGE increase in payroll. The plant is now profitable again.