Trump threatens John Deere with 200% tariffs if production moves to Mexico By Reuters

By Gram Slattery and Kanishka Singh

WASHINGTON (Reuters) – Donald Trump said on Monday he would slap a 200 percent tariff on John Deere (NYSE: ) imports into the United States if the company moves production to Mexico as planned, comments that hurt the farm equipment maker’s share price. .

Earlier this year, John Deere announced it was laying off hundreds of workers in the Midwest and increasing production capacity in Mexico, a decision that angered workers and some political leaders.

“As you know, they announced a few days ago that they will be moving a large portion of their manufacturing business to Mexico,” Trump said at an event in western Pennsylvania. “Right now I’m notifying John Deere that if you do this, we’re putting a 200 percent tariff on everything you want to sell in the United States.”

The Republican presidential candidate has often said he would slap automakers that move production to Mexico with a 200 percent tariff, but this appears to be the first time he has extended that threat to a farm equipment company.

Shares of John Deere fell more than 1.5 percent in after-hours trading Monday, after closing up 0.75 percent. A company representative did not respond to a request for comment.

Trump has made sweeping tariffs the centerpiece of his economic plan should he defeat Vice President Kamala Harris, the Democratic nominee, in the Nov. 5 election. The strategy is designed to protect American jobs from foreign competition, but economists warn that its measures will boost inflation.

Speaking at a gathering 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 US farm goods.

During the so-called “Phase 1” trade deal between China and the United States during Trump’s 2017 to 2021 term, the US agreed to reduce some tariffs on Chinese goods in exchange for commitments to buy more agricultural products, energy and American made products. . At the time, Trump said China would buy $50 billion in U.S. agricultural products, although Chinese purchases have fallen well below that figure.

“Probably my first call – I’ll call President Xi – I’ll say you have to honor the deal you made. We made the deal, buy $50 billion worth of American agricultural products, and I guarantee you, he’s going to buy it, he’s going to buy it 100 percent,” Trump said.

Farmers and industrial workers are a key part of Trump’s coalition, and cracking these constituencies will be important if he wants to defeat Harris. That’s especially true in Pennsylvania, where polls consistently show a thin race.