By Gram Slattery and Kanishka Singh
WASHINGTON, Sept 23 (Reuters) - Donald Trump said on
Monday he would slap a 200% tariff on John Deere's ( DE )
imports into the United States if the company moved production
to Mexico as planned, comments that hit the agricultural
equipment manufacturer's share price.
Earlier this year, John Deere ( DE ) announced that it was
laying off hundreds of employees in the Midwest and increasing
its production capacity in Mexico, a decision that upset workers
and some political leaders.
"As you know, they've announced a few days ago that they are
going to move a lot of their manufacturing business to Mexico,"
Trump said at an event held in western Pennsylvania. "I am just
notifying John Deere ( DE ) right now that if you do that, we are
putting a 200% tariff on everything that you want to sell into
the United States."
The Republican presidential candidate has frequently said he
would slap automakers that move their production to Mexico with
a 200% tariff, but this appears to be the first time he has
extended that threat to an agricultural equipment company.
Shares in John Deere ( DE ) fell more than 1.5% in after-hours
trade on Monday after closing up 0.75%. A representative for the
company did not respond to a request for comment.
Trump has made erecting extensive tariffs the central
element of his economic plan should he beat Vice President
Kamala Harris, the Democratic nominee, in the Nov. 5 election.
The strategy is designed to protect American jobs from foreign
competition, but economists warn his measures will boost
inflation.
Speaking to a gathering of farmers in a rural area outside
of Pittsburgh, Trump also said he would press Chinese President
Xi Jinping to honor a deal to purchase $50 billion of U.S.
agricultural goods.
During the so-called "Phase 1" trade deal inked between
China and the United States during Trump's 2017 to 2021 term,
the U.S. agreed to cut some tariffs on Chinese goods in exchange
for pledges to purchase more American agricultural products,
energy and manufactured goods. At the time, Trump said China
would buy $50 billion in U.S. agricultural products, though
Chinese purchases fell well short of that figure.
"Probably my first call - I'm going to call President Xi -
I'm going to say you have to honor the deal you made. We made
the deal, you buy $50 billion worth of American farm products,
and I guarantee you, he will buy it, 100% he will buy it," Trump
said.
Farmers and industrial workers are a crucial part of Trump's
coalition, and turning out these constituencies will be
important if he is to beat Harris. That is especially true in
Pennsylvania, where polls consistently show a razor-thin race.