Less than 5% of US sales are made in Mexico

DAVENPORT, Iowa (KWQC) – Deere & Co. is responding to former President Donald Trump's statement at a rally that he would impose a 200% tariff on John Deere products if the company moved production to Mexico.

The following responses come from Jennifer Hartmann, global director of strategic public relations at John Deere:

In FY23 and FY24, less than 5% of U.S. sales were manufactured in Mexico. Over 75% of U.S. sales are manufactured in the U.S. We are not moving production to Mexico as continues to be reported, instead we have strategically leveraged our footprint in Mexico for cab production (this transition was announced in 2022 and is being completed this year) and now mid-size skid steer loaders and CTLS by 2026. We are present in [Mexico] since 1952. It is not unusual for Deere to consider a number of factors when leveraging our global footprint as a global company while building new products in U.S. plants (like See & Spray in Des Moines and the 9RX tractor in Waterloo). This year’s layoffs were driven by a weakening farm economy in 2024 and a reduction in customer orders for our equipment.

Hartmann also shared information regarding John Deere's commitment to U.S. manufacturing and noted that Deere is constantly reviewing production efficiencies and product/component changes to optimize U.S. manufacturing space.

John Deere has taken several steps to address declining farm incomes over the past two years. Since March, the company has laid off 1,600 employees. It has also begun moving some of its production to Mexico.

At an event in Pennsylvania on Monday, Trump said he would impose a 200% tariff on John Deere products if the company moved production to its planned plant in Ramos, Mexico.

“I just warned John Deere,” he said. “If you do that, we will impose a 200 percent tariff on anything you want to sell in the United States.”

So if I win, John Deere is going to pay 200%. They haven't started yet. Maybe they haven't even made the final decision yet. But I think they have – John Deere is going to do it and everybody else who does it because it hurts our farmers and it hurts our manufacturing industry.

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