Monday, December 23, 2024

‘200% Tariffs’ If You Move Manufacturing to Mexico, Trump Warns John Deere

Former President Donald Trump issued a stark warning to agricultural giant John Deere on Monday, threatening a 200% tariff on the company’s products if it proceeds with plans to move some production to Mexico. Speaking at a policy roundtable in Smithton, Pennsylvania, hosted by the Protecting America Initiative, Trump criticized the manufacturer’s decision, arguing that it would harm American farmers and manufacturing.

“They’ve announced a few days ago that they’re going to move a lot of their manufacturing business to Mexico,” Trump said. “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.”

John Deere had announced earlier this year that it would shift production of some models to Mexico, which has already resulted in layoffs at facilities in Iowa and Illinois. The company also disclosed plans to build a new plant in Ramos, Mexico, by the end of 2026.

Trump’s remarks mark the first time he has singled out John Deere in his ongoing campaign to promote American manufacturing and punish companies that offshore jobs. His threats come as part of a broader strategy to impose tariffs on companies that move production overseas, a key element of his economic platform for the 2024 presidential race.

In response, a John Deere spokesperson referred to the company’s website, which outlines its commitment to U.S. manufacturing. The company stated that it sometimes relocates “less complex operations, such as cab assembly, to other locations” in order to focus its U.S. factories on higher-value activities.

Despite Trump’s threat, John Deere shares fell about 1.7% in after-hours trading following his comments. The former president also extended his threats to automakers, promising similar tariffs on cars manufactured in Mexico.

“We’re going to put big tariffs on those cars that are coming in here at 100% to 200%, and they’re no longer going to be competitive,” Trump said. “So you better stay in Michigan.”

Trump’s tariff threats reflect his broader campaign strategy to protect American jobs and industries, although critics argue that such measures could increase costs for consumers and businesses.

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