Trump threatens 200% tariff on John Deere

[bèlla]

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.

 

[Nithavela]

Noted: When Trump becomes president, he'll hold US based corporations hostage.

 

[bèlla]

Noted: When Trump becomes president, he'll hold US based corporations hostage.

I was shocked when he said it and went to their site to price an item. That's crazy.

I wonder if he'll say the same to Apple.

~bella

 

[wing2000]

The man has no idea what he is talking about.

 

[Vambram]

Why do those who ain't going to vote for Trump NOT have a problem with American jobs of American businesses leaving the USA going over to Mexico or other nations?

 

[bèlla]

Why do those who ain't going to vote for Trump NOT have a problem with American jobs of American businesses leaving the USA going over to Mexico or other nations?

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

 

[bèlla]

The man has no idea what he is talking about.

Wing! Always a pleasure to see you. I hope you're well.

There were 3 people seated beside him and John Deere trucks behind him on the stage. I was waiting for them to say something but they didn't.

~bella

 

[Vambram]

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

Should we do whatever is necessary to strongly discourage American corporations from shipping their jobs FROM the USA to other nations?

 

[The IbanezerScrooge]

Should we do whatever is necessary to strongly discourage American corporations from shipping their jobs FROM the USA to other nations?

Why do you hate capitalism?

 

[Vambram]

Why do you hate capitalism?

LoL
Why did you ask a goading question?

 

[bèlla]

Should we do whatever is necessary to strongly discourage American corporations from shipping their jobs FROM the USA to other nations?

Whatever is subjective. What are you willing to pay or lose?

~bella

 

[Vambram]

Whatever is subjective. What are you willing to pay or lose?

~bella

That is a subjective question. But also a good question. I am certain that millions of Americans would much rather have as many good paying jobs remain here in the USA as possible instead of seeing corporations close up plants in America.

 

[bèlla]

That is a subjective question. But also a good question. I am certain that millions of Americans would much rather have as many good paying jobs remain here in the USA as possible instead of seeing corporations close up plants in America.

If he applies this across the board prices will skyrocket and there'll be pushback if some companies are excluded like Apple. Are Americans prepared to pay twice as much for their favorite items? I doubt it.

~bella

 

[Vambram]

If he applies this across the board prices will skyrocket and there'll be pushback if some companies are excluded like Apple. Are Americans prepared to pay twice as much for their favorite items? I doubt it.

~bella

The previous tariffs by President Trump did not cause any significant inflation. Please remember that Trump believes that American corporations ought to be discouraged from closing down American plants in the USA and then sending those jobs to manufacturing plants in other nations. I don't understand why Americans are objecting to American businesses and corporations from being strongly encouraged to keep the American jobs in the USA which are already here in our nation.

 

[All Becomes New]

A couple of things about this.

1. This is nothing new. This is just putting meat on the bones, as Trump has previously said he would put tariffs on foreign companies. He mentioned tariffs in other places, such as in his interview with Elon Musk.

2. Inflation is just as bad, if not worse. I understand that Democrats want the rich to pay their fair share, and there is some legitimacy to those claims. However, spending money to lower inflation is insane and does not make any fiscal sense, which is how sleepy Joe has handled the issue.

 

[Larniavc]

Should we do whatever is necessary to strongly discourage American corporations from shipping their jobs FROM the USA to other nations?

Everything except regulations?

 

[Vambram]

Everything except regulations?

We are going slightly off topic. However, corporations have demonstrated repeatedly, time and time again, that they are more than willing to move from USA states to other states and/or nations which have a more favorable business environment.

 

[Richard T]

Nice topic and post.

There are no individual tariffs for companies. Tariffs are designed for countries. The President does have some authority to change tariffs but only if it is defense related and the tariffs would have to be applied equally. Deere could win in USA court and Mexico would also have a legal beef if Trump singled them out. Iowa has a 2.9 percent unemployment rate. This is way below the natural rate. Given that info, if Trump wanted less immigration building up the job base in Mexico would help.

Iowa now shows Trump's lead is about 4% and might be in play. I imagine this motivates talk of stopping the Iowa plant closure with tariffs. A better response would be to talk about what incentives Deere could be given to remain in the state. Trump could also mention the programs that are in place for dislocated workers do to imports.

Also, I looked it up and Ramos, Arizpe near Monterey is a Maquiladora site according to a job listing for a new plant that is hiring. This means that the USA imports those goods duty free or with extra preference if that is what Deere has in mind. Perhaps Trump should be asked if he likes the Maquiladora program that has been in place since the 1960s? Harris would be clueless too I imagine.

In the big picture, greater opportunities in Mexico mean less dependence on China. Also Trump should know that there are assistance programs for those laid off because of imports. Trade Act Programs

I am sure Harris is MIA on this issue.

Maquiladora in Mexico​

"A maquiladora in Mexico is a factory that operates under preferential tariff programs established and administered by the United States and Mexico. Materials, assembly components, and production equipment used in maquiladoras are allowed to enter Mexico duty-free. Products made can be exported into the U.S. at lower tariffs than those from other countries. Recently, the term “maquiladora” has been used for similar operations in Latin America and Asia as well, though its roots are deeply imbedded in Mexico." Source: What is maquiladora in Mexico - the history and success story

 

[wing2000]

I thought thiis sounded familiar:

"During the February 13, 2016, Republican Presidential Primary Debate, Trump referenced the video, saying that if elected he would l impose a 35% tax on every air conditioner Carrier imports from Mexico.[17][6][18]"

...after Carrier announced it was moving jobs to Mexico.

Carrier Air Conditioner move to Mexico - Wikipedia

en.wikipedia.org

 

[wing2000]

The previous tariffs by President Trump did not cause any significant inflation.

...those tariffs, which Biden kept in place, were targeted against certain Chinese imports (25%). Trump is calling for a tariff of 10-20% on *all imports* regardless of the country of origin. And. much higher tariffs on all Chinese imports. Once more, American companies who rely on imported parts to manufacture finished goods would feel the impact. Additionaly, countries would retaliate, resulting in reduced US exports.