### Deere & Co. Responds to Trump's Tariff Warning Over Mexico Production

Deere & Co. has issued a response following remarks made by former President Donald Trump during a recent rally. Trump announced that he would impose a 200% tariff on John Deere products should the company relocate its production operations to Mexico.

Jennifer Hartmann, Global Director of Strategic Public Relations at John Deere, addressed these concerns by providing clarity on the company's manufacturing strategy. Hartmann pointed out that less than 5% of U.S. sales were produced in Mexico in both fiscal years 2023 and 2024. Conversely, over 75% of John Deere's U.S. sales are manufactured domestically.

Hartmann emphasized that the company is not shifting its entire production to Mexico but is instead leveraging its Mexican facilities for specific components. These include cab production, a move announced in 2022 and expected to conclude this year, and mid-size skid steers and compact track loaders by 2026. Hartmann also noted that Deere has maintained a presence in Mexico since 1952 and that operational decisions are made based on a variety of strategic factors as part of its global business framework.

In addition, the spokesperson addressed recent layoffs, indicating that these were due to a weakening farm economy in 2024 and a reduction in customer orders for John Deere equipment. Since March, the company has laid off 1,600 employees in response to falling farm income over the past two years.

Trump made his tariff threat during an event in Pennsylvania, stating that if John Deere demonstrates intentions to shift production to its planned facility in Ramos, Mexico, he would take immediate action. "I'm just notifying John Deere right now," Trump said. "If you do that, we're putting a 200% tariff on everything that you want to sell into the United States."

Hartmann responded by reaffirming John Deere’s commitment to U.S. manufacturing, stating the company constantly reviews production efficiencies and optimizes manufacturing space in the United States.