(Bloomberg) — Former President Donald Trump threatened to hit US farm machinery maker Deere & Co. with steep tariffs if the company moves production to Mexico during an event on American farmers and trade.
Most Read from Bloomberg
“I’m just notifying John Deere right now, if you do that, we’re putting a 200% tariff on everything that you want to sell into the United States,” Trump said Monday, citing reports about the company shifting manufacturing to Mexico.
Deere earlier this year said it would lay off 503 workers in Illinois and 310 in Iowa as it faces rising operational costs and declining demand. It’s also acquiring land in Mexico to shift some production previously done in the US.
Deere shares fell more than 2% in after-market trading in New York before paring losses.
The world’s top farm machinery maker, which also has operations in South America and Europe, is an iconic American firm with its green and yellow tractors. Moline, Illinois-based Deere said in a statement it is committed to US manufacturing with $2 billion invested in domestic plants since 2019.
Trump’s comments came at a forum in Pennsylvania focused on threats to US growers, as he sought to rally support in the crucial battleground. In addition to warning Deere, Trump accused China of failing to honor a deal to buy $50 billion in US agricultural exports and vowed to raise the matter with Chinese President Xi Jinping if the Republican returns to the White House.
“My first call, I’m going to call up President Xi and say you have to honor the deal you made,” Trump said. “You made a deal, you’d buy $50 billion worth of American farm product. And I guarantee you he will buy it, 100%, he will buy it.”
Trump as president reached a so-called “phase one” trade deal with China in early 2020 that saw the US reduce some duties in exchange for China pledging to increase its purchases of US exports, including $50 billion of agricultural goods. But actual purchases fell short of that vow, with China importing less than 60% of the promised goods and services — covering food, energy and manufactured products through December 2021, according to a study by the Peterson Institute for International Economics.
The Republican presidential nominee on Monday assailed President Joe Biden and Vice President Kamala Harris — his November election rival — saying the current administration had failed to enforce the deal.
China, the world’s second largest economy, has emerged as a top target in the presidential race between Trump and Harris as both candidates vow to take a tough stance against Beijing and its growing military and economic influence.
Monday’s event was organized by the Protecting America Initiative, which describes itself as a group “committed to stopping Chinese influence” in the US. Its senior advisers include former Ambassador to Germany Richard Grenell and former US Representative Lee Zeldin, both of whom joined Trump for the discussion.
The former president heard from farmers about the challenges they face, using the opportunity to tout his pledge to hit both US allies and adversaries with tariffs if he secures a second White House term.
Trump has vowed to impose a 60% tariff on China and has threatened a 100% tariff on Chinese cars made in Mexico – part of a broader agenda that would upend global trade. As president, Trump placed tariffs on more than $300 billion of Chinese goods.
Republican Senator Marco Rubio of Florida in August urged the company to prioritize US workers in a letter he sent to Deere Chief Executive Officer John May.
China Focus
Harris is largely expected to hew to Biden’s approach of “intensive diplomacy,” keeping communication with Beijing open and highlighting areas where the nations can cooperate even as the administration looks to make the US more competitive with China and restrict its access to cutting edge technologies with national security implications.
Over the weekend, Biden hosted the Quad Leaders Summit in Delaware, bringing together the prime ministers of India, Australia and Japan, part of an effort to strengthen ties with US allies in the Indo-Pacific as a counterweight to China. During a hot mic moment, Biden was heard telling other leaders that China is “testing” the US and its allies in the region.
Earlier: China ‘Testing Us All,’ Biden Says at Indo-Pacific Summit
The Biden administration this year has taken a number of steps to tighten the screws on China, including finalizing new tariffs on Chinese goods, cracking down on de minimis exemptions for Chinese shipments of cheap products and curbing shipments of steel and aluminum from China and elsewhere through Mexico.
“Donald Trump used the White House to give handouts to wealthy corporations and foreign companies at the expense of family farmers, drive farm bankruptcies to record levels, and sacrifice small American farmers as pawns in his failed trade war with China,” Harris campaign spokesman Joseph Costello said in a statement Monday.
Earlier: Harris Says Trump ‘Sold Us Out’ to China, Slams His Praise of Xi
Trump’s event in Pennsylvania comes ahead of a rally he is slated to hold in the state later Monday. Pennsylvania has emerged as the top battleground in the fight between Harris and Trump and a state that underscores the importance of the economy in the race. An August Bloomberg News/Morning Consult poll shows a tight race, with Harris leading Trump in Pennsylvania by four percentage points.
–With assistance from Stephanie Lai and Michael Hirtzer.
(Adds Deere shares move in fourth paragraph, Deere statement in fifth.)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66f23985839a4abcbc9017522a366a49&url=https%3A%2F%2Fwww.yahoo.com%2Fnews%2Ftrump-vows-hit-john-deere-203343828.html&c=13540083217204981240&mkt=en-us
Author :
Publish date : 2024-09-23 09:33:00
Copyright for syndicated content belongs to the linked Source.
