Trump threatens John Deere with 200 per cent tariffs if production moves to Mexico

Washington | Reuters—Republican presidential candidate Donald Trump said on Monday he would slap a 200 per cent tariff on John Deere’s imports into the United States if the agricultural equipment company moved production to Mexico as planned.

“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 per cent tariff on everything that you want to sell into the United States.”

Read Also

Port of Vancouver elevator strike will have ‘devastating impact’ on farmers say Grain Growers

On Sept. 21, Grain Workers Union Local 333 issued a 72-hour strike notice to terminal operators represented by the Vancouver Terminal Elevators Association (VTEA). According to a letter posted to the union’s Facebook page, workers will walk off the job on Tuesday morning.

Earlier this year, John Deere announced that it was laying off hundreds of employees in the American Midwest and increasing its production capacity in Mexico, a decision that upset workers and some political leaders.

Trump has frequently said he would slap automakers that move their production to Mexico with a 200 per cent tariff, but this appears to be the first time he has extended that threat to an agricultural equipment manufacturer.

Shares in John Deere fell more than 1.5 per cent in after-hours trade on Monday after closing up 0.75 per cent. A representative for the company did not respond to a request for comment.

Speaking to a gathering of farmers in a rural area outside of Pittsburgh, Trump also said he would press Chinese President Xi Jinping to honor a deal to purchase $50 billion (C$67.7 billion) of U.S. 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 United States 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 U.S. 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 per cent 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 Vice President Kamala Harris, the Democratic nominee, in the Nov. 5 election. That is especially true in Pennsylvania, where polls consistently show a razor-thin race.