Shock Move by John Deere! U.S. Production Halted—Trump Reacts

Shock Move by John Deere! U.S. Production Halted—Trump Reacts
What happens when one of America's most iconic companies shifts its operations abroad? That’s exactly what’s happening with John Deere—a brand deeply rooted in U.S. farming for more than a century. The company is moving part of its production to Mexico, and the decision is already stirring controversy. Former President Donald Trump has responded forcefully, sparking national debate. So, what led to this major shift, and why is it causing such an uproar? Stick around to uncover the full story.
A New Factory in Mexico
In late 2024, John Deere announced a $55 million investment to build a new factory in Ramos Arizpe, Mexico. Set to open in 2026, this plant will manufacture compact track loaders and mid-frame skid steer loaders—machines essential for smaller farms and construction sites. While the company hasn’t confirmed how many U.S. jobs will be impacted, it’s clear that some roles in Dubuque, Iowa will be affected.
Production In US And Trumps Reaction Says It All!
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John Deere cited rising U.S. manufacturing costs and growing global demand as the main reasons for the move. Mexico was chosen for several strategic advantages: a skilled workforce, geographic proximity to key markets in North and South America, and significantly lower labor costs—Mexican factory workers earn about 70% less than their American counterparts. These factors make production in Mexico more cost-effective.
The company also faces stiff competition from international manufacturers like Japan’s Kubota and India’s Mahindra, both of which already benefit from lower production expenses. Relocating production is seen as a way for John Deere to remain competitive.
Additionally, shifting some operations to Mexico helps solve logistical issues. U.S. ports often experience congestion, and domestic factories sometimes struggle to find enough workers. A Mexican plant can ease these bottlenecks, enabling faster production and delivery. It also allows John Deere to scale up output of in-demand machines, especially those used on small and mid-sized farms, without overloading its current facilities.



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