Fresh Trade Threats

Please note Trump Issues Fresh Trade Threats, Targeting Deere

At a campaign event in Pennsylvania Monday the Republican presidential nominee said, if he were elected, Deere would face tariffs of 200% if it sold made-in-Mexico equipment previously made in the U.S. Trump said that Deere is moving a majority of its production to the country, a point which the company disputed.

The Illinois-based company in June said it would move production of some models of small and medium-size construction loaders to its plant in Mexico from Dubuque, Iowa. Deere in 2022 decided to move production of cabs for large farm tractors to Mexico from Waterloo, Iowa. The cab move is scheduled to be completed this year.

Deere executives said the moves are intended to free up manufacturing space and employees at U.S. plants for other models. The company said it would start assembling its new 9RX tractor line in Waterloo in space formerly occupied by the cab line.  

"They think they're going to make product cheaper in Mexico and sell it for the same price as before and make a lot of money getting rid of our labor and our jobs," Trump said. "If they're going to do that, then we're going to put a 200% tariff on everything they want to send back into the United States."

Deere said it has invested over $2.5 billion in its U.S. factories in the past four years. The U.S. is Deere's largest market.

The nation's economic ties with Mexico have long drawn the ire of Trump but the latest threat appears to be an escalation in his tariff rhetoric. He has already promised to impose tariffs of up to 60% on China and 10% to 20% on other countries.