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Despite threats of tariffs, why is John Deere still moving plants to Mexico, and what does this mean for American jobs?

Farmers voted for this. They voted to get rid of their workforce, the tariffs and the confusion. They saw what happened the first time how china started looking for other people to buy farm products from. Now they are doing it again. He cancelled the program that sent food to Africa.

That screwed over the farmers that had the contracts for that food. John Deere saw what happened they saw farmers ended up on farming welfare. Those people don’t buy farm equipment. They hope to sell to Brazil who now have contracts from China.

They hope to sell to Canada with no tariffs along with Mexico. There will be parts they have to import if they stay here there will be tariffs.

This isn’t the 1890s. There is no going back. The steel and Aluminum isn’t available here and no one will build either plant. They have a world to sell to except the US. You want it here than build solar farms, wind farms and gas fired electric plants.

No one is going to build a coal fired plant coal is the most expensive way to make electricity. Kicking more people off of heath insurance is only going to make it cost more. The orange idiot isnt fixing anything its only going to get worse.

I don’t know about the specifics of John Deere, but I think we are going to see this sort of thing happening quite a bit.

What Trump’s trade war policies are doing is to isolate the USA market from the rest of the world. Trump’s tariff policies essentially make both importing into and exporting from the USA expensive and difficult, so companies such as John Deere will organise themselves so as to minimise moving anything across the US border in either direction.

What this means is that these companies will need to set up two separate manufacturing and sales operations, one within the USA serving only the US market and another parallel operation outside of the borders of the USA to serve the rest of the world.

I suspect that John Deere’s move to Mexico is them setting up their rest of the world international operation.

The threat of tariffs won’t concern John Deere because their Mexican operation probably isn’t intended to supply the American market so they won’t incur any American tariffs. The whole point of dividing their company into two separate entities, USA and rest of the world, is to avoid such tariffs, both those imposed by Trump and those imposed by other countries in retaliation.

As for American jobs, there will be fewer jobs because whereas in the past John Deere equipment was made in the USA to serve the entire world, now the US operation will be scaled back to serve only the USA, a smaller market.

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