Tuesday, September 24, 2024

Donald Trump's John Deere Threat Has a Problem: the USMCA Act He Signed

 https://www.newsweek.com/donald-trump-john-deere-tariffs-usmca-act-problem-1958336

Republican nominee Trump made his feelings known about the plan during a policy roundtable in Smithton, Pennsylvania, hosted by the Protecting America Initiative.

"They've announced a few days ago that they're going to move a lot of their manufacturing business to Mexico," Trump said. "I'm just notifying John Deere right now: If you do that, we're putting a 200 percent tariff on everything that you want to sell into the United States." Newsweek has contacted John Deere for comment via email outside of standard working hours.

However, the United States-Mexico-Canada Agreement (USMCA) signed by Trump in January 2020, a replacement for the North American Free Trade Agreement (NAFTA), prohibits the leverage of tariffs on a range of goods, allowing companies to manufacture in Mexico and Canada and export back to the U.S. without high costs.

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