Why It Matters
Two U.S. senators are asking federal regulators to examine whether major agricultural equipment manufacturers should face tariffs after shifting production to Mexico while paying billions to investors. The request targets companies that employ thousands across Midwest manufacturing towns.
What Happened
Sens. Tammy Baldwin of Wisconsin and Bernie Moreno of Ohio sent a letter Thursday to Commerce Secretary Howard Lutnick requesting an investigation of John Deere, Caterpillar, and Case New Holland. The bipartisan pair asked the department to consider tariffs under a provision that allows trade restrictions for national security reasons.
The lawmakers argued the companies eliminated U.S. jobs and moved manufacturing to Mexico while continuing to pay shareholders through dividends and stock buybacks. Baldwin and Moreno requested the investigation under Section 232 authority, which permits tariffs when imports threaten national security interests.
By the Numbers
According to the senators, John Deere distributed $8.4 billion to shareholders in recent years. Caterpillar paid out $18.2 billion, while CNH provided $1.7 billion through dividends and stock repurchases.
CNH eliminated 220 positions at its Racine, Wisconsin, plant in 2024 and announced in January it would close a Burlington, Iowa, facility affecting roughly 200 workers. John Deere laid off more than 3,600 union employees after relocating production from Iowa to Mexico, the letter stated.
Zoom Out
The request reflects broader concerns about manufacturing job losses in industrial states where agricultural equipment production has historically been concentrated. Similar debates over tariffs and domestic production have intensified as policymakers weigh trade policy against economic competitiveness.
Section 232 investigations have previously been used to impose tariffs on steel and aluminum imports. Applying the provision to agricultural equipment would represent an expansion of the authority to address corporate decisions about production locations.
What’s Next
The Commerce Department will decide whether to open a formal investigation into the companies’ manufacturing practices and employment decisions. If initiated, the review would examine whether offshoring production affects national security and whether tariffs would be an appropriate response.
Representatives for the three companies did not immediately respond to requests for comment on the senators’ letter.