Business & Economy

Business & Economy

The Big Story 

Former President Trump warned John Deere that it could face massive tariffs if he returns to the Oval Office next year, after the Illinois-based company announced plans to outsource some of its manufacturing to Mexico. 

© AP Photo/Charlie Neibergall

“I just noticed behind me John Deere tractors. I know a lot about John Deere, I love the company,” Trump said on Monday 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 [tariff] — they haven’t started it yet. Maybe they haven’t even made the final decision yet. But I think they have.”

The recent comments mark the latest indicator Trump would use tariffs aggressively if he wins in November.

The remarks come months after outlets reported 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. 

According to Fox Business Network, the company’s business had, at the time, also been undergoing a broader restructuring that included plans to move its manufacturing of skid steer loaders and compact track loaders to Mexico by the end of 2026.

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, while threatening to use tariffs to force U.S. companies to base manufacturing domestically.

Meanwhile, some experts have warned that tariffs would lead to an increase in inflation, with companies passing on additional costs to consumers — an idea rejected by Trump on Monday. 

The Hill’s Brett Samuels has it all here.

Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.

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