Earlier this week at a campaign event at an event at a farm in Pennsylvania, former President Donald Trump, threatened John Deere with a 200% tariff if the agricultural manufacturer moves production to factories in Mexico.
“I am just notifying John Deere right now that if you do that, we are putting a 200% tariff on everything that you want to sell into the United States.” “This is just the beginning,” Trump said of Deere’s plans to move production. “All of a sudden, they’re not going to be in the country anymore. They’re going to have to pay a very big price.”
But the proposed tariff would cause problems with the U.S.-Mexico-Canada Agreement, which allows automakers to benefit from lower tariffs if production is centered in North American countries.
Deere announced in June that it would shift some production from Iowa to a new facility it is building in Ramos Arizpe, Mexico, approximately three hours south of the U.S. border. The new facility is set to become operational by 2026.
“It’s hurting our farmers. It’s hurting our manufacturing,” Trump said Monday.
