Iconic US manufacturer sent severe warning as it threatens to move production to Mexico after 187 years
Donald Trump has announced that he will impose a 200 percent tariff on John Deere imports into the United States if the company goes ahead with plans to move production to Mexico.
So far in 2024, John Deere has laid off about 1,830 workers, while the company is moving more of its tractor and farm equipment production to Mexico.
The layoffs are taking place at several locations in Iowa – Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo – plus Davenport and East Moline in Illinoisand a research center in Urbandale.
In many cases, the production that these American workers were responsible for is being moved to new locations in Mexico. It is a decision that led to great anger among workers and some political leaders.
“They’re going to move a lot of their manufacturing operations to Mexico,” former President Trump said Monday at an event in western Pennsylvania.
“I’m now informing John Deere that if you do that, we will impose a 200 percent import duty on anything you want to sell in the United States.”
John Deere makes everything from tractors, construction vehicles, mowers and even snowmobiles. The company is facing backlash over its ongoing plan to lay off more and more American workers in favor of moving production to Mexico.
The Republican presidential candidate has repeatedly said he would slap a 200 percent tariff on automakers that move production to Mexico, but this appears to be the first time he has extended that threat to an agricultural machinery company.
A John Deere spokesman did not respond to a request for comment from Reuters.
Trump has made imposing extensive tariffs a central element of his economic plan should he defeat Vice President Kamala Harris, the Democratic presidential nominee, in the Nov. 5 election.
History of John Deere
Portrait of John Deere, who founded the company that still bears his name today
The company, known today for its green tractors and iconic leaping deer logo, was founded nearly two centuries ago, in 1837.
In its early years, the company produced self-cleaning steel plows, which revolutionized agriculture by replacing the inferior cast iron plow that often got stuck in sticky soil.
Today, John Deere, which still bears its founder’s name, produces everything from tractors, construction vehicles, lawn mowers and even snowmobiles.
Since its modest beginnings in the 19th century, the city has expanded considerably and now has 109 factories and offices worldwide.
Many of the company’s dozens of factories across the U.S. are the largest employers in small Midwestern towns, so it could be a huge blow if dozens or even hundreds of people suddenly lost their jobs and didn’t have many people to turn to.
The strategy is intended to protect American jobs from foreign competition, but economists warn the measures will fuel inflation.
Speaking to a group of farmers in a rural area outside Pittsburgh, Trump also said he would pressure Chinese President Xi Jinping to honor a deal to buy $50 billion worth of American farm products.
Farmers and industrial workers are a crucial part of Trump’s coalition, and turning them out will be key if he wants to beat Harris. That’s especially true in Pennsylvania, where polls consistently show a razor-thin race.
Trump’s comments to farmers in Pittsburgh on Monday followed similar but broader remarks as he laid out his economic vision for the US today in Savannah, Georgia.
Former President Donald Trump said Tuesday that he would steal jobs from other countries if he were re-elected to the White House.
At the beginning of this year, John Deere employed approximately 22,600 payroll and production employees in the two states.
In August, DailyMail.com asked John Deere how many new jobs have been created in Mexico in recent years – as the U.S. workforce has shrunk. It did not provide an answer.
A statement at the time said the reason for the layoffs was to “strongly position John Deere for the future.”
Employees are furious about the cuts.
A longtime John Deere employee at the Harvester Works plant in East Moline, Illinois, says it comes down to one thing: greed.
“It seems like we are hearing about more layoffs every day and that is creating uncertainty,” said the employee, who asked to remain anonymous for fear of reprisals.
The company attributes this to a 20 percent drop in sales from 2023 to 2024.
Demand for tractors is falling as agricultural prices remain low and costs for farmers rise.
A John Deere factory in Brazil. The company is moving production there, as well as to Mexico
Workers at a factory in Ottumwa, another small Iowa town, had been expecting layoffs for two years after John Deere announced it would move part of its production line to Mexico
Inside a John Deere factory in Ottumwa, Iowa, where more than 100 jobs have been cut this year
More than 10,000 John Deere workers went on strike for five weeks in 2021, winning a 10 percent pay increase for hourly workers and increased pension benefits
John Deere was founded 187 years ago.
More layoffs are expected later this year, despite John Deere making more than $10 billion in profits in 2023 and paying CEO John May a total of $26.7 million in compensation.
John Deere said it remains committed to U.S. manufacturing, with bosses pointing to a $2 billion investment in U.S. factories since 2019.