Introduction of the Issue
Deere & Co. has openly disputed claims by former President Donald Trump, confirming that its plans to shift some production to Mexico remain unchanged. This statement came in response to Trump’s comments during an interview at the Economic Club of Chicago.
Trump’s Assertion
“I said if John Deere builds those plants, they are not selling anything into the United States.” – Donald Trump
Deere’s Response
Following Trump’s remarks, Deere clarified its position, stating that no announcement had been made to halt the establishment of new facilities in Mexico. The company reiterated its commitment to continue with its previously announced production strategies.
Details of Deere’s Production Shift In June, Deere announced it would move the production of certain construction loaders from Dubuque, Iowa, to a new plant in Mexico, aiming for completion in 2026. Furthermore, Deere had previously decided in 2022 to transfer the production of cabs for its large farm tractors from Waterloo, Iowa, to an existing plant in Mexico, expected to be completed within the year.
Trump’s Tariff Threat
“Last month, Trump said that if he is elected president again, Deere would face tariffs of 200% on made-in-Mexico equipment sold in the U.S. that was previously made here.” – Referencing Trump’s threat
Deere’s Strategic Intent Deere executives have stated that the relocation is intended to optimize the use of manufacturing space and personnel at U.S. plants for the production of other models. They also plan to start assembling the new 9RX tractor line in Waterloo, using the space that was once used for cab production.
The unfolding story underscores the tension between political rhetoric and business decisions in the global market. Deere’s steadfast approach in its operational strategies showcases the intricate balance companies must maintain in the face of political pressures and economic realities.