According to Mexican news sources, John Deere has announced plans to invest $55 million in a new manufacturing plant in Nuevo León, Mexico, despite threats from U.S. President-elect Donald Trump to impose significant tariffs on companies moving production to Mexico. The facility, which will focus on producing construction machinery, is expected to begin operations in 2026.
According to El Economista, Gecimar Morini, John Deere’s manager for Mexico, Central America, and the Caribbean, confirmed the plans, emphasizing the company’s long-term commitment to the region. “The company seeks to continue to invest in the country and is committed to sustainability, urban development … despite political changes, our position is to aim for development as a company,” Morini said.
The move comes after Trump’s September announcement threatening a 200 percent tariff on John Deere products manufactured in Mexico, a response to the company’s decision to shift some production from U.S. plants in Iowa and Illinois to Mexico. Despite this, John Deere appears undeterred.
Thomas Spana, John Deere’s marketing manager for Latin America, highlighted the company’s broader strategy to Mexico Daily News, “The investments are not just for the short term or related to [specific] administrations. The commitments are long term and about the opportunities we have to better support the people dedicated to food and construction production,” Spana told El Financiero.
The new plant will primarily manufacture compact equipment such as mini track loaders and mini wheel loaders, targeting the domestic market in Mexico. This facility marks John Deere’s first dedicated construction equipment plant in the country. Currently, the company operates several production facilities in Coahuila and Nuevo León, alongside a dedicated export lane at the Laredo-Colombia International Bridge.
Morini also noted Mexico’s significance as a growing market for construction equipment, with consumption increasing by 76 percent since 2022. “We see Mexico as an attractive market, which is why we are investing in the expansion of our dealers and growth in new territories,” Morini said.
The announcement comes as Trump reiterates plans to impose a 25% tariff on all goods imported from Mexico and Canada once he assumes office. However, John Deere’s leadership remains focused on long-term growth, prioritizing market potential over political challenges.
