Former President Donald Trump made headlines on Monday during a campaign event in Smithton, Pennsylvania, where he threatened agricultural manufacturer John Deere with a 200% tariff if they move production to factories in Mexico. Trump's comments came in response to John Deere's recent announcement to shift production of some models to Mexico, resulting in layoffs at facilities in Iowa.
During a policy roundtable hosted by the Protecting America Initiative, 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." This move aligns with Trump's campaign focus on tariffs as a key economic policy.
John Deere, in response to Trump's threat, highlighted its commitment to U.S. manufacturing on its website, emphasizing investments in American factories and workers. The company explained that sometimes less complex operations, such as cab assembly, may need to be moved to other locations in order to enhance value-added activities in U.S. factories.
This is not the first time Trump has made such threats, as he also warned automakers manufacturing cars in Mexico of potential tariffs during the event. Following Trump's comments, shares of Deere were down 1.7% in after-hours trading.
It is important to note that Trump's remarks were seemingly impromptu and prompted by the John Deere tractors set up as the backdrop of the event. As the situation unfolds, it will be interesting to see how John Deere responds to Trump's warning and how it may impact the company's production decisions moving forward.