In the lead-up to the 2024 presidential election, former President Donald Trump is once again making headlines with his trade policy proposals. This time, he’s targeting John Deere, a legendary American agricultural equipment manufacturer, with a bold threat. Trump has promised a staggering 200% tariff on John Deere products if the company proceeds with its plans to shift some of its production to Mexico. This move has sparked heated debate, with critics like billionaire entrepreneur Mark Cuban calling Trump’s stance “a good way to destroy a legendary American company.”
Cuban’s criticism, shared on the platform X (formerly known as Twitter), directly addresses Trump’s comments made at a policy roundtable in Smithton, Pennsylvania. Trump, highlighting his understanding and appreciation for John Deere, emphasized that any production shift to Mexico would trigger a hefty tariff. “If you do that, we’re putting a 200% tariff on everything that you want to sell into the United States,” Trump warned, reaffirming his campaign’s strong stance on tariffs.
While John Deere’s website emphasizes the company’s commitment to U.S. manufacturing, it also explains the necessity of moving less complex operations to other locations for operational efficiency. However, the potential impact of a 200% tariff on John Deere and its customers remains a significant concern, particularly given the already challenging economic landscape.
Trump’s recent tariff threats against John Deere aren’t isolated incidents. Just last week, he vowed to impose similar tariffs on Chinese-made cars manufactured in Mexico, warning of a potential collapse of the U.S. auto industry if Vice President Kamala Harris wins the 2024 election. Trump reiterated these claims during a town hall event in Flint, Michigan, despite the lack of evidence supporting the existence of such factories.
It’s important to note that the U.S. auto industry is currently thriving. According to the Bureau of Labor Statistics, since President Joe Biden took over, auto and parts jobs have increased by 13.6%, reaching 1.07 million by August. Car sales even saw a positive 2.4% increase in the first half of this year.
The idea that the U.S. auto industry is on the brink of collapse seems unlikely, at the very least. The U.S. has been strategically distancing itself from China, a trend expected to continue regardless of the 2024 election outcome. Both Harris and Trump are likely to maintain this stance, impacting Chinese companies that outsource production or invest in factories in Southeast Asia and Mexico.
Furthermore, the Biden administration has proposed a ban on vehicles equipped with Chinese software, citing national security concerns. The U.S. Commerce Department aims to almost completely prevent Chinese cars from entering the U.S. market, further complicating the trade landscape.
The potential ramifications of Trump’s trade policies are far-reaching, impacting not only John Deere and the U.S. auto industry but also the broader economic landscape. As the 2024 election approaches, the focus on trade policy remains a key issue, with both candidates advocating for different approaches to securing American economic interests.
