President Trump has never been one to hold back on protecting American jobs, and his latest target is agricultural giant John Deere. Speaking at a rally in Pennsylvania on Monday, President Trump vowed to impose a massive 200% tariff on the company’s imports into the U.S. if it moves more of its production to Mexico.
John Deere recently announced plans to shift production of skid steer loaders and compact track loaders to a facility in Mexico by 2026, a move that will result in the layoff of 600 employees at plants in Iowa and Illinois. The company justified the decision as part of a larger strategy to “optimize” its operations and take advantage of global labor markets. But Trump? He’s not having it.
“As you know, they’ve announced a few days ago that they are going to move a lot of their manufacturing business to Mexico,” Trump told the crowd. “I am just notifying John Deere right now that if you do that, we are putting a 200% tariff on everything that you want to sell into the United States.”
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This isn’t the first time Trump has used the threat of tariffs to try to keep American companies from offshoring jobs. He’s previously thrown down the gauntlet against automakers, but this is the first time he’s extended that challenge to an agricultural equipment manufacturer like John Deere. And given the economic and political weight of the farming industry in key swing states, it’s a move that could resonate with voters who feel left behind by globalization.
John Deere, however, sees things differently. The company has invested over $2 billion in U.S. factories since 2019, expanding production lines in Illinois, Iowa, and North Carolina. In their defense, Deere argues that moving some production to Mexico is necessary to free up U.S. plants for “highly value-additive activities” like the manufacturing of more complex equipment. But try telling that to the hundreds of workers in Iowa and Illinois who are losing their jobs.
Economic headwinds, including high interest rates and declining farmer incomes, have put John Deere in a tough spot. With farmers delaying equipment purchases, the company says it has to scale back production and “optimize” operations. But Trump’s not buying it, and he’s made it clear that if John Deere wants to shift more jobs south of the border, they’ll pay the price—literally.
Trump’s tough talk on tariffs is sure to play well with the working-class voters who’ve seen their communities decimated by outsourcing. Whether it’s enough to stop John Deere remains to be seen.
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