Trump threatens John Deere with 200 percent tariff if it outsources manufacturing

(The Hill) - Former President Trump threatened Illinois-based John Deere on Monday with massive tariffs on its products if it outsources some of its manufacturing to Mexico as it had previously announced, the latest indicator he would use tariffs aggressively if he wins in November.

“I just noticed behind me John Deere tractors. I know a lot about John Deere, I love the company,” Trump said at an event with farmers in Pennsylvania. 

“But as you know, they’ve announced a few days ago that they’re going to move a lot of their manufacturing business to Mexico,” he continued. “I’m just notifying John Deere right now, if you do that, we’re putting a 200 percent tariff on everything you want to sell into the United States, so that if I win John Deere is going to be paying a 200 percent — they haven’t started it yet. Maybe they haven’t even made the final decision yet. But I think they have.”

Fox Business Network reported in June that John Deere, which sells tractors, crop harvesters and other large equipment, was laying off roughly 600 staff members at plants in Illinois and Iowa. 

The layoffs came amid a broader restructuring of the company’s business that included plans to move its manufacturing of skid steer loaders and compact track loaders to Mexico by the end of 2026, according to Fox Business Network.

John Deere did not immediately respond to a request for comment about Trump’s tariff threats.

Trump has leaned on tariffs as something of a cure-all as he pitches his economic vision for a second term. He has said repeatedly he would impose tariffs on all imported goods; he has threatened to use tariffs to force U.S. companies to base manufacturing domestically, and he suggested the use of tariffs could help bring down the cost of child care, a comment that drew criticism from Democrats.

Experts have warned that tariffs would lead to an increase in inflation, with companies passing on additional costs to consumers. Trump rejected that analysis Monday, and he signaled he would push for tariffs even if Congress did not approve of them.

“I don't need them. I don’t need Congress, but they'll approve it,” he said. “I'll have the right to impose them myself if they don't. I'd rather get their support.”