Trump threatens to impose 200% tariffs on John Deere

Donald Trump is threatening to impose 200% tariffs on John Deere if it follows through with plans to move some manufacturing jobs to Mexico. His unexpected remarks came during a Monday campaign stop in Smithton, Pennsylvania.

The event was billed a farmer roundtable, featuring pro-Trump lawmakers and producers. In the middle of his nearly 75 minutes on stage, Trump paused to say he’d “just noticed” the John Deere tractors serving as his backdrop. He then warned the company about shifting jobs to Mexico.

“I’m just notifying John Deere right now that, if you do that, we’re putting a 200% tariff on everything that you want to sell into the United States,” Trump said.

The Republican presidential nominee vowed to impose similar tariffs on other companies if they move manufacturing operations out of the country. If he wins, Trump says he expects Deere to reverse its decision.

The former president added that he likes John Deere and buys “a lot of their products.” He did not elaborate on which products he buys or how he uses them.

So far, John Deere has not publicly responded to Trump’s remarks. When asked to comment, company officials pointed to previous public statements which they say highlight the company’s commitment to the U.S.

Deere says it has invested more than $2 billion in American factories. The company contends that, in order to position its U.S. factories to undertake “highly valued-added activities,” it is sometimes necessary to move “less complex” operations to other locations.

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In June, the company announced plans to relocate some manufacturing jobs from Iowa to Mexico by the end of 2026. John Deere also laid off several hundred employees in Iowa and Illinois this year.

Increased trade with China

During the same campaign event, Trump promised to make China buy $50 billion in agricultural goods. The former President said, if elected, his first call will be to Chinese President Xi Jinping, telling him to live up to a deal he agreed to during Trump’s time in office.

In 2019, Trump and Xi brokered a deal to end the escalating trade war between the two nations. At the time, Trump claimed China agreed to purchase $50 billion in U.S. ag goods.

Chinese officials have never publicly confirmed if they agreed to that number.

In 2020, Trump’s last full year in office, ag exports to China stood at $26.4 billion. According to U.S. Census Bureau Trade data, Chinese ag export hit a record $38.1 billion in 2022 before falling to $29.1 billion in 2023.