Donald Trump has threatened tractor maker John Deere with 200% tariffs if the US-headquarted company proceeds with its plans to move some of its production to Mexico.

Speaking to farmers in Pennsylvania, the Republican candidate in the US presidential election said he will enforce the tariff if he wins the election.

John Deere has proposed to move the production of some models of its skid-steer loaders and compact loaders to its factory in Mexico.

Trump also extended the warning to other companies planning to move their production to cheaper locations outside the US.

“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.

“John Deere, and anyone else who does this, will [incur tariffs] because it’s hurting our farmers, it’s hurting our manufacturing.

“They think they’re going to make product cheaper in Mexico and then sell it in for the same price they did before; make a lot of money by getting rid of our labour and our jobs,” added Trump.

“John Deere is a great name; I buy a lot of John Deere; it’s tremendous. I’m one of their big customers.”

Response

John Deere has said that the proposed production move of some of its operations, such as cab assembly, is sometimes necessary to undertake “higher value-additive activities" and that its factory in Mexico has been an important part of its "global operation for nearly 70 years".

The machinery company employs approximately 30,000 people in more than 60 US-based facilities, while 50,000 people are employed at its dealerships. It said that in 2023, it spent over $16bn with US-basd suppliers.

The company added that in response to challenging market conditions, it recently took steps to reduce costs, including cutting numbers in its workforce.

“John Deere is a great American company, employing great American workers, making the best equipment the world over. We are proud of our history, our people and our ongoing role in US manufacturing," the company said.