Trump Threatens John Deere with 200% Tariffs Over Potential Move to Mexico, Reports Reuters

By Gram Slattery and Kanishka Singh

WASHINGTON – Donald Trump announced on Monday that he would impose a 200% tariff on imports from John Deere if the company proceeded with its plans to relocate production to Mexico. This statement had an immediate negative impact on the agricultural equipment manufacturer’s stock price.

Earlier this year, John Deere announced layoffs affecting hundreds of employees in the Midwest while simultaneously planning to expand its production capacity in Mexico, a decision that has drawn criticism from workers and various political figures.

“They announced recently that they are moving a significant portion of their manufacturing business to Mexico,” Trump stated during an event in western Pennsylvania. “I am notifying John Deere right now that if you go ahead with that plan, we will impose a 200% tariff on all your products sold in the United States.”

The former president has repeatedly indicated that he would apply similar tariffs to automakers relocating their operations to Mexico, but this marks the first time he has extended such a stance to an agricultural equipment firm.

Following Trump’s comments, John Deere’s shares fell more than 1.5% in after-hours trading, despite having closed up 0.75% earlier in the day. The company did not provide a comment when approached for a response.

Trump’s proposal to implement extensive tariffs is a cornerstone of his economic agenda as he campaigns against Vice President Kamala Harris in the upcoming November 5 election. He argues that these measures are essential for protecting American jobs against foreign competition; however, some economists caution that such policies could lead to increased inflation.

At the same event with farmers outside of Pittsburgh, Trump also declared his intention to urge Chinese President Xi Jinping to fulfill a commitment made under a previous trade agreement to purchase $50 billion in U.S. agricultural products.

In what has been referred to as the “Phase 1” trade deal, established during Trump’s presidency from 2017 to 2021, the U.S. agreed to lower certain tariffs on Chinese imports in exchange for increased purchases of American agricultural goods, energy, and manufactured items. Although the deal promised substantial purchases from China, actual orders were significantly lower than anticipated.

Trump remarked, “My first call will be to President Xi, insisting that he honors the deal we made. He committed to buying $50 billion worth of American farm products, and I am confident he will follow through.”

Farmers and industrial workers represent vital demographics in Trump’s political base, and their support will be crucial in his campaign against Harris, especially in battleground states like Pennsylvania, where polls indicate a tightly contested race.