Trump's Tariff Threat Could Hit John Deere Stock: Pro-Trump Congress Member Faces Potential Losses

A threat to impose a 200% tariff on John Deere products by former President Donald Trump could hurt publicly traded Deere & Co DE and the investors who hold the stock, including members of Congress.

What Happened: Trump recently said he would place a hefty tariff on John Deere products if the company shifts some production from the U.S. to Mexico.

"If you do that, we're putting a 200% tariff on everything that you want to sell into the United States," Trump said at a Pennsylvania event.

The threat from Trump could have a major impact on Deere's future growth plans as it looks for new ways to cut costs and increase production.

A tariff could hurt the stock price and investors, which includes several members of Congress.

According to Benzinga's Government Trades page, Representatives Rick Allen (R-Ga.) and Josh Gottheimer (D-N.J.) sold their Deere stock in August and June respectively. While the sales were likely done for various reasons, concerns over a potential tariff could be a consideration for ditching the stock.

One Congress member who has been buying Deere stock is Senator Markwayne Mullin (R-Okla.).

Mullin disclosed buying $1,000 to $15,000 in DE stock in October 2023 and $15,000 to $50,000 in DE stock in September 2023.

The potentially harmful impact on Deere with tariffs or threats of tariffs could hurt Mullin's portfolio. Mullin endorsed Trump for president in the 2024 election last year. Trump previously endorsed Mullin during his 2022 Senate election campaign.

Did You Know? Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool

Why It's Important: Trump's comments come as he has threatened to impose tariffs on companies that move production to other countries like Mexico and China.

The threat against John Deere caught the attention of billionaire entrepreneur Mark Cuban.

"This lack of understanding of business is insane," Cuban said. "Put a 200% tariff on the American company moving some production to Mexico but tariff Chinese manufacturers 10% or 20%, so that the Chinese products will be cheaper to sell in the U.S. than the American company."

Cuban said the threat and follow-through would be a "good way to destroy a legendary American company."

A return of Trump to the White House could increase pressure on companies with overseas production, potentially leading to the imposition of tariffs.

DE Price Action: Deere shares traded at $407.40 on Wednesday, versus a 52-week trading range of $340.20 to $417.47. Deere stock is up 1.4% year-to-date in 2024.

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