Trump Threatens John Deere with 200% Tariff Over Production Move to Mexico
Former President Donald Trump issued a stern warning to agricultural manufacturer John Deere on Monday, threatening a 200% tariff if the company relocates production to Mexico. Speaking at a policy roundtable in Smithton, Pennsylvania, hosted by the Protecting America Initiative, Trump expressed his concerns over the company’s recent announcement to shift manufacturing, which he claims negatively impacts American farmers and manufacturing jobs.
“They’ve announced a few days ago that they’re going to move a lot of their manufacturing business to Mexico,” Trump stated. “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.”
The announcement of production shifts has already led to layoffs at John Deere facilities in Iowa, intensifying Trump’s critique. He emphasized the adverse effects on American workers, stating, “It’s hurting our farmers. It’s hurting our manufacturing.”
In response to Trump’s comments, a John Deere spokesperson referred to the company’s commitment to U.S. manufacturing, highlighting ongoing investments in American factories and workers. The spokesperson explained that while some operations, like cab assembly, may be moved to other locations to enhance U.S. factory capabilities, the company remains dedicated to its American operations.
Trump’s comments came as he stood in front of John Deere tractors at the event and marked the first time he specifically targeted the company. Following his remarks, John Deere shares dropped by 1.7% in after-hours trading.
The former president also extended similar threats to automakers operating in Mexico, suggesting that tariffs on vehicles imported from Mexico could reach 100% to 200%, thereby making them non-competitive in the U.S. market. “You better stay in Michigan,” he warned.