WASHINGTON (Reuters) — Donald Trump says he will slap a 200 per cent tariff on John Deere’s imports into the United States if the company moves production to Mexico as planned.
His Sept. 23 comments reduced the agricultural equipment manufacturer’s share price.
Earlier this year, John Deere announced it was laying off hundreds of employees in the Midwest and increasing its production capacity in Mexico, a decision that upset workers and some political leaders.
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“As you know, they’ve announced a few days ago that they are going to move a lot of their manufacturing business to Mexico,” Trump said at an event held in western Pennsylvania.
“I am just notifying John Deere right now that if you do that, we are putting a 200 per cent tariff on everything that you want to sell into the United States.”
The Republican presidential candidate has frequently said he would apply a 200 per cent tariff against automakers that move their production to Mexico, but this appears to be the first time he has extended that threat to an agricultural equipment company.
Erecting extensive tariffs is a central element of Trump’s economic plan should he beat 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 his measures will boost inflation.
Speaking to a gathering of farmers in a rural area outside of Pittsburgh, Trump also said he would press Chinese President Xi Jinping to honour a deal to purchase $50 billion of U.S. agricultural goods.
During the so-called “Phase 1” trade deal inked between China and the United States during Trump’s 2017-21 term, the U.S. agreed to cut some tariffs on Chinese goods in exchange for pledges to purchase more American agricultural products, energy and manufactured goods.
At the time, Trump said China would buy $50 billion in U.S. agricultural products, though Chinese purchases fell well short of that figure.
“Probably my first call — I’m going to call President Xi — I’m going to say you have to honour the deal you made. We made the deal, you buy $50 billion worth of American farm products, and I guarantee you, he will buy it, 100 per cent he will buy it,” Trump said.
Farmers and industrial workers are a crucial part of Trump’s coalition, and turning out these constituencies will be important if he is to beat Harris. That is especially true in Pennsylvania, where polls consistently show a razor-thin race.
