Trump threatens 200% tariff on John Deere

[All Becomes New]

And. much higher tariffs on all Chinese imports.

China is not our friend.

 

[wing2000]

China is not our friend.

I agree.
Yet, we Americans have willingly consumed their cheaply produce goods for the last 4 decades. I guess we value cheap goods over American jobs.

 

[comana]

Donald Trump's John Deere threat has a problem: the USMCA Act he signed

The former president has taken aim at the machinery manufacturer for planning to move some of its production to Mexico.

www.newsweek.com

Trump as a big hurdle to implementing his tariff threat against John Deere. A little thing called USMCA.

 

[Arcangl86]

I am curious how this would interact with the USMCA. I also doubt this would really effect John Deere. They are such a powerhouse that they can raise their prices to pass on the entire cost of the tariff and still people would buy their products, and honestly, their American competitors would probably raise prices too. This is not a smart move.

 

[All Becomes New]

I agree.
Yet, we Americans have willingly consumed their cheaply produce goods for the last 4 decades. I guess we value cheap goods over American jobs.

Correct. And the American people are stupid for that reason.

 

[IceJad]

Trump threatens 200% tariff’ if John Deere moves production to Mexico​

• Former President Donald Trump threatened John Deere with a 200% tariff if the agricultural manufacturer moves some of its production to factories in Mexico.
• John Deere plans to shift production of some of its models to Mexico, a move that has resulted in layoffs at some facilities in Iowa.
• Shares of Deere dipped about 1.6% in after-hours trading. Trump made the threat shortly after the closing bell.

Note: This would double the price of their products.

“They’ve announced a few days ago that they’re going to move a lot of their manufacturing business to Mexico,” the Republican nominee said at a policy roundtable in Smithton, Pennsylvania, hosted by the Protecting America Initiative.

“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,” said Trump, who has made tariffs a key focus of his campaign’s economic policy.

John Deere has announced that it plans to shift production of some of its models to Mexico, a move that has resulted in layoffs at facilities in Iowa.

“It’s hurting our farmers. It’s hurting our manufacturing,” Trump said Monday.

The former president made similar threats Monday to automakers that manufacture cars in Mexico.

“We’re going to put big tariffs on those cars that are coming in here at 100[%] to 200%, and they’re no longer going to be competitive,” he said, “so you better stay in Michigan.”

Note: This would increase the price by 50% to double the sticker tag.

For more information on tariffs see What is a Tariff.

Actually I don't see a problem in that. Many countries around the world apply tariffs for products manufactured outside their borders. If you have zero tariffs then sooner or later you would find that there will be less jobs for the people in your country. If you keep importing there will be a huge trade deficit. Price might be cheaper in the short term however in the long run there will be less people who could afford even cheaper products because there will be less good paying jobs. Soon you would find your country's productivity goes towards paying others for items you need to live.

You will force the country to over compensate by gearing towards certain more competitive industries and neglecting others. A lob sided economy like resource extracting nations. When said resource become commercially unviable the nation goes into a financial crisis such as Venezuela. A more robust and self sustaining economy is better in the long run compared to a hyper specialized economy.

 

[FireDragon76]

I don't agree with that but the tariff is excessive. We don't make much here anymore. I try to support American companies when I can but we need to be honest. Many things are made elsewhere.

Forget about tractors. He said the same about cars. Consider this scenario. A $50k vehicle is 50% more expensive at minimum which makes it $75k or $100k at its maximum. The consumer can't afford that.

~bella

Punitive taxes on foreign cars would be a disaster. Japanese and Koreans are the only folks making actual cars now days in the US market.

 

[Vambram]

Japanese and Koreans are the only folks making actual cars now days in the US market.

I disagree.

 

[FireDragon76]

A tariff isn't a substitute for a lack of industrial policy. Trump and the GOP don't have that, they just court extractive industries that ultimately damage the environments of actual communities and the planet.

 

[FireDragon76]

I disagree.

Why? The Big 3 aren't making hardly any cars, only SUV's and trucks.

 

[Vambram]

Why? The Big 3 aren't making hardly any cars, only SUV's and trucks.

The Big 3 are making what a majority of new automobile customers are willing to buy.

 

[The IbanezerScrooge]

The Big 3 are making what a majority of new automobile customers are willing to buy.

Well, that's just not accurate:

Ford and GM together account for less than a third of the total market share vs the foreign manufacturers.

And just to be clear, these numbers are neither "liberal" or "leftist" numbers nor "conservative" or "rightist" numbers. They're just the numbers. There's no bias in this "fact-check."

 

[wing2000]

WSJ Editorial Board: A Deere in Trump’s Political Headlights​

"Hard to believe, but Donald Trump is giving U.S. companies a reason to think Kamala Harris might be better for their business. On Monday he gave her an assist by threatening tariffs on Deere & Co. for shifting some of its U.S.-based production to Mexico."

https://www.wsj.com/opinion/donald-trump-tariffs-john-deere-mexico-79daf213

 

[Vambram]

Well, that's just not accurate:
View attachment 355009

Ford and GM together account for less than a third of the total market share vs the foreign manufacturers.

View attachment 355010

And just to be clear, these numbers are neither "liberal" or "leftist" numbers nor "conservative" or "rightist" numbers. They're just the numbers. There's no bias in this "fact-check."

I didn't say that the Big 3 American automobile makers were the top selling ones in the USA. Just because one is willing to purchase something doesn't mean that one will actually do so.

 

[The IbanezerScrooge]

I didn't say that the Big 3 American automobile makers were the top selling ones in the USA. Just because one is willing to purchase something doesn't mean that one will actually do so.

But that doesn't follow. You said that the "majority of new automobile customers" are willing to buy American brands, but those brands aren't the majority of sales. That doesn't make any sense.

The reason it doesn't make sense is because it is not accurate. Just logically. If your statement were true then American brands should account for more than 50% of new auto sales. I mean, you see what I'm saying, right? And how did you come up with the "willingness" quotient? What survey did you reference?

 

[Vambram]

Being willing to do something is not the same thing as actually doing it, @The IbanezerScrooge

 

[The IbanezerScrooge]

Being willing to do something is not the same thing as actually doing it, @The IbanezerScrooge

How do you know they are willing to do it, but, for whatever reason, are not doing it?

 

[Vambram]

How do you know they are willing to do it, but, for whatever reason, are not doing it?

Lack of necessary funds.

 

[The IbanezerScrooge]

Lack of necessary funds.

So, it's just, like, a feeling you have? Do you have any data?

 

[DaisyDay]

So, it's just, like, a feeling you have? Do you have any data?

I think his point is that should Donald succeed in this excessive tariff policy, then foreign imports would be way more expensive which could result in people who are currently buying imports to switch to cheaper US cars - thus the emphasis on “willingness”.