Donald Trump says he will impose a 200 percent tariff on John Deere imports into the United States if the company goes ahead with plans to move production to Mexico.
So far in 2024, John Deere has laid off about 1,830 workers while moving more of its tractor and farm equipment manufacturing to Mexico.
The layoffs are occurring at several locations in Iowa: Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo, as well as Davenport and East Moline. Illinoisas well as a research center in Urbandale.
In many cases, the production for which these American workers were responsible is being moved to new locations in Mexico. decision that upset workers and some political leaders.
“They’re going to be moving a lot of their manufacturing business to Mexico,” former President Trump said Monday at an event in western Pennsylvania.
“I’m notifying John Deere right now that if they do that, we’ll put a 200 percent tariff on anything they want to sell to the United States.”
John Deere makes everything from tractors and construction vehicles to lawnmowers and even snowmobiles. The company is facing backlash over its plan to lay off increasing numbers of American workers to move production to Mexico.
The Republican presidential candidate has frequently said he would impose a 200 percent tariff on automakers that move production to Mexico, but this appears to be the first time he has extended that threat to a farm equipment company.
A John Deere representative did not respond to a Reuters request for comment.
Trump has made imposing sweeping tariffs a centerpiece of his economic plan if he defeats Vice President Kamala Harris, the Democratic nominee, in the Nov. 5 election.
History of John Deere
Portrait of John Deere, founder of the company that bears his name to this day
The company, known today for its green tractors and iconic leaping deer logo, was founded nearly two centuries ago in 1837.
In its early days, it produced self-cleaning steel plows that revolutionized farming and replaced the inferior cast iron plow that often got stuck in sticky soil.
Today, John Deere, which still bears the name of its founder, makes everything from tractors to construction vehicles to lawn mowers to even snowmobiles.
It has expanded considerably since its humble beginnings in the 19th century and now has a total of 109 factories and offices around the world.
Many of the company’s dozens of factories across the U.S. are the largest employers in small Midwestern towns, so it’s especially devastating when dozens or even hundreds of people are suddenly out of work with little else to turn.
The strategy is designed to protect American jobs from foreign competition, but economists warn that its measures will fuel inflation.
Speaking to a group of farmers in a rural area outside Pittsburgh, Trump also said he would press Chinese President Xi Jinping to honor a deal to buy $50 billion in U.S. agricultural products.
Farmers and industrial workers are a crucial part of Trump’s coalition, and getting these sectors to vote will be important if he wants to beat Harris. This is especially true in Pennsylvania, where polls consistently show a very close race.
Trump’s comments to Pittsburgh farmers on Monday came before similar but more far-reaching remarks when he laid out his economic vision for the United States today in Savannah, Georgia.
Former President Donald Trump said Tuesday that he would steal jobs from other countries if elected to the White House again.
At the beginning of the year, John Deere employed about 22,600 salaried and production workers in the two states.
In August, DailyMail.com asked John Deere how many new jobs had been created in Mexico in recent years as the US workforce shrank. There was no response.
In a statement issued at the time, he said the reason for the layoffs was to “strongly position John Deere for the future.”
Employees are furious about the cuts.
A longtime John Deere worker at the Harvester Works plant in East Moline, Illinois, said it all comes down to one thing: greed.
“Every day we hear about more layoffs and that creates uncertainty everywhere,” said the worker, who remained anonymous for fear of reprisals.
The company has attributed the problem to a 20 percent drop in sales between 2023 and 2024.
Demand for tractors has declined as crop prices remain low amid rising costs for farmers.
A John Deere factory in Brazil. The company is moving production there, as well as to Mexico
Workers at a plant in Ottumwa, another small Iowa town, had been expecting layoffs for two years after John Deere announced that part of its production line would move to Mexico.
Inside a John Deere plant in Ottumwa, Iowa, where more than 100 jobs were cut this year
More than 10,000 John Deere workers went on strike for five weeks in 2021. They won a 10 percent raise for hourly workers and higher retirement benefits.
John Deere was founded 187 years ago.
More layoffs are expected later this year, even though John Deere posted more than $10 billion in profits in 2023 while paying CEO John May $26.7 million in total compensation.
John Deere said it remains committed to manufacturing in the United States. Executives highlighted a $2 billion investment in American factories since 2019.