Trump has gone mad with threats. Tariffs on John Deere would cost farmers plenty.
Fresh Trade Threats
Please note Trump Issues Fresh Trade Threats, Targeting Deere
At a campaign event in Pennsylvania Monday the Republican presidential nominee said, if he were elected, Deere would face tariffs of 200% if it sold made-in-Mexico equipment previously made in the U.S. Trump said that Deere is moving a majority of its production to the country, a point which the company disputed.
The Illinois-based company in June said it would move production of some models of small and medium-size construction loaders to its plant in Mexico from Dubuque, Iowa. Deere in 2022 decided to move production of cabs for large farm tractors to Mexico from Waterloo, Iowa. The cab move is scheduled to be completed this year.
Deere executives said the moves are intended to free up manufacturing space and employees at U.S. plants for other models. The company said it would start assembling its new 9RX tractor line in Waterloo in space formerly occupied by the cab line.
“They think they’re going to make product cheaper in Mexico and sell it for the same price as before and make a lot of money getting rid of our labor and our jobs,” Trump said. “If they’re going to do that, then we’re going to put a 200% tariff on everything they want to send back into the United States.”
Deere said it has invested over $2.5 billion in its U.S. factories in the past four years. The U.S. is Deere’s largest market.
The nation’s economic ties with Mexico have long drawn the ire of Trump but the latest threat appears to be an escalation in his tariff rhetoric. He has already promised to impose tariffs of up to 60% on China and 10% to 20% on other countries.
Dear Farmers
Trump has a message for you: “I promise to make you pay as much as possible for farm machinery.”
Check it out. Trump would put 200 percent tariffs on Deere but 60 percent on China.
And how are farmers doing?
Corn Price Per Bushel
Corn prices are about where they were in 2007.
Technically speaking, the price of corn put in a double top and looks poised to drop to about $3.00 a bushel.
Soybean Price Per Bushel
Soybean prices are also about where they were in 2007.
Technically speaking, the price of soybeans put in a double top and looks poised to drop to about $8.00 a bushel.
Combine and Tractor Statistics
- Nearly 360,000 total tractors and combines were sold from dealer lots in 2021 in North America according to Successful Farming.
- According to Avant Marketing Group’s 2022 Power Brand Study, 60% of surveyed farmers owned a John Deere combine, followed by Case IH at 28.2% and Gleaner at 4%.
- The 2024 list price of a 2024 John Deere S770 is $569,500
So yeah, Mr. Trump let’s bump up the price on all of those. Farmers are so profitable, they can afford it.
Don’t tell me this is just postering. Trump is tariff man and out to prove it.
Then again, Trump says so much total bullsheet that perhaps this is just more of it.
The Kamala Harris Plan to Create More Housing Shortages
Meanwhile, on the other side of the two-compartment looney bin, please note The Kamala Harris Plan to Create More Housing Shortages
And both sides are in competition over more child tax credits, taxes, on tips, and tariffs.
While Trump blustering nonsense, Harris is desperately trying to say nothing at all.
But give Harris credit. Whereas Harris understands the need to keep her mouth shut, Trump has no idea what to say or how to win votes.
Two Ways to Lose
Hurry, hurray, step right up. Over here kid. You can’t lose.
If you want more inflation, there are two ways to get it: Vote for Harris or Vote for Trump.
Convince me I’m wrong.