Former US President and Republican presidential candidate Trump threatened agricultural machinery giant John Deere on Monday, claiming that if the company outsources some of its production operations to Mexico as previously announced, it will impose huge tariffs on its products. This is the latest sign that Trump will adopt aggressive tariff policies if he wins the election in November.
I just noticed a John Deere tractor behind me. I know John Deere very well and I love this company, "Trump said at an event with farmers in Pennsylvania.
But as you know, they recently announced that they will transfer a lot of their manufacturing operations to Mexico, "he continued. I am now notifying John Deere that if you do so, we will impose a 200% tariff on all products you want to sell to the United States, so if I win the election, John Deere will pay the 200% tariff
Affected by Trump's remarks, John Deere's stock price fell more than 1.5% after trading on Monday. During the regular trading session of the day, the stock closed up 0.75%.
John Deere&Company was founded in 1837 and is headquartered in Moline, Illinois, USA. It is a leading global manufacturer of construction machinery, agricultural machinery, and lawn equipment.
In June of this year, John Deere announced plans to shift some of its agricultural machinery production to Mexico, which led to layoffs at its Iowa factory.
This harms our farmers. This harms our manufacturing industry, "Trump said on Monday.
This is the first time Trump has extended the tariff threat to agricultural equipment manufacturers. He has previously stated multiple times that he will impose high tariffs ranging from 100% to 200% on car manufacturers that transfer production to Mexico.
Trump has always regarded tariffs as a panacea when promoting his economic vision for his second term. He has repeatedly stated that he will impose tariffs on all imported goods and threaten to use tariffs to force American companies to keep their manufacturing industry in the country. He also hinted that using tariffs may help reduce childcare costs, a statement that drew criticism from Democrats.
Experts warn that high tariffs will lead to increased inflation, and businesses will pass on additional costs to consumers. Trump refuted this analysis on Monday and stated that even if Congress does not approve it, he will push for the imposition of tariffs.
I don't need them. I don't need Congress, but they will approve it, "he said. If they don't do it, I will have the right to implement it myself. But I tend to have their support