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News » Trump threatens John Deere with 200% tariff over outsourcing

Trump threatens John Deere with 200% tariff over outsourcing

trump-threatens-john-deer-with-tariff
Photo from AP/Alex Brandon

PENNSYLVANIA, UNITED STATES — Former United States President Donald Trump issued a stern warning to John Deere, threatening to impose a 200% tariff on its products if the company proceeds with plans to outsource manufacturing to Mexico. 

The Illinois-based agricultural machinery giant announced earlier this year its intention to move some production operations south of the border, a move that has drawn criticism from Trump as he campaigns for a potential second term.

Speaking at a farmers’ event in Pennsylvania, Trump expressed his admiration for John Deere but made it clear that outsourcing would come at a significant cost. 

“I just noticed behind me John Deere tractors. I know a lot about John Deere, I love the company,” Trump stated. “But as you know, they’ve announced…that they’re going to move a lot of their manufacturing business to Mexico. I’m just notifying John Deere right now, if you do that, we’re putting a 200% tariff on everything you want to sell into the United States.”

Tariff strategy and economic vision

Trump’s remarks underscore his broader economic strategy, which heavily relies on tariffs to bolster domestic manufacturing. Throughout his campaign, he advocated for imposing tariffs on all imported goods and suggested that such measures could also help reduce costs in other sectors, such as child care — a claim that has faced criticism from economists and political opponents.

Despite warnings from experts about the inflationary impact of tariffs, Trump remains undeterred. 

He emphasized his willingness to act unilaterally if Congress does not support his tariff plans, stating, “I don’t need them. I don’t need Congress, but they’ll approve it.”

John Deere’s restructuring plans

John Deere’s decision to shift some manufacturing operations to Mexico is part of a broader restructuring effort aimed at addressing economic challenges and rising operational costs. 

Earlier reports indicated that the company plans to relocate the production of skid steer loaders and compact track loaders by the end of 2026. This move is expected to affect approximately 600 employees at its Illinois and Iowa plants.

The United Auto Workers (UAW) union has criticized John Deere’s decision, labeling it as prioritizing “corporate greed” over American jobs. The union has called for the company to reconsider its outsourcing plans and retain jobs within the United States.

Ending outsourcing and reviving U.S. manufacturing

Trump has previously pledged to end outsourcing if reelected, aiming to transform the United States into a manufacturing superpower. His 2024 Republican Party platform, unveiled before the party convention last July, outlines this commitment as part of his third presidential campaign.

Senior campaign advisors Chris LaCivita and Susie Wiles noted that Trump’s platform includes 20 promises that concisely and accessiblely encapsulate the former president’s vision to “Make America Great Again.”

The promise to end outsourcing harks back to Trump’s first presidential term when his administration targeted programs like the H-1B visa program, which is vital for foreign professionals working in the U.S.

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