Trump threatens John Deere with 200% tariffs if production moves to Mexico
Shares in John Deere fell more than 1.5% in after-hours trade
24 September 2024
2 minute read
By: Donald Trump said on Monday he would slap a 200% tariff on John Deere's imports into the United States if the company moved production to Mexico as planned, comments that hit the agricultural equipment manufacturer's share price, reported Reuters.
Earlier this year, John Deere announced that it was laying off hundreds of employees in the Midwest and increasing its production capacity in Mexico, a decision that upset workers and some political leaders.
"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 said at an event held in western Pennsylvania. "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."
The Republican presidential candidate has frequently said he would slap automakers that move their production to Mexico with a 200% tariff, but this appears to be the first time he has extended that threat to an agricultural equipment company.
Shares in John Deere fell more than 1.5% in after-hours trade on Monday after closing up 0.75%. A representative for the company did not respond to a request for comment.
Trump has made erecting extensive tariffs the central element of his economic plan should he beat Vice President Kamala Harris, the Democratic nominee, in the Nov. 5 election. The strategy is designed to protect American jobs from foreign competition, but economists warn his measures will boost inflation.
Speaking to a gathering of farmers in a rural area outside of Pittsburgh, Trump also said he would press Chinese President Xi Jinping to honour a deal to purchase $50 billion of US agricultural goods.
During the so-called "Phase 1" trade deal inked between China and the United States during Trump's 2017 to 2021 term, the US agreed to cut some tariffs on Chinese goods in exchange for pledges to purchase more American agricultural products, energy and manufactured goods. At the time, Trump said China would buy $50 billion in US agricultural products, though Chinese purchases fell well short of that figure.
"Probably my first call - I'm going to call President Xi - I'm going to say you have to honor the deal you made. We made the deal, you buy $50 billion worth of American farm products, and I guarantee you, he will buy it, 100% he will buy it," Trump said.
Farmers and industrial workers are a crucial part of Trump's coalition, and turning out these constituencies will be important if he is to beat Harris. That is especially true in Pennsylvania, where polls consistently show a razor-thin race.
