John Deere Concerned About Trade Retaliation
The world’s largest maker of agriculture equipment, Deere and Company, is worried that possible trade tensions between the U.S. and other countries could affect its machinery sales.
A Bloomberg report says the steel and aluminum tariffs on imports to America will have an impact on the company. But, Deere is much more worried about possible trade retaliation that could target American agricultural products.
CEO Sam Allen says, “If China no longer buys U.S. soybeans or Mexico no longer purchases U.S. corn, that would be really bad for our customers and would be very impactful on us.” Allen says about one-third of U.S. agriculture is exported. He notes that trade flow could be interrupted if President Trump would follow through on threats to withdraw from the North American Free Trade Agreement, or if China imposes its own tariffs and quotas on American goods.
When it comes to manufacturing their products, Deere says steel mills will be able to increase their prices significantly. Allen says the price of steel could legitimately rise up to 30 percent in a short period of time.
Source: NAFB News