The CEO of Deere and Company told CNBC trade rhetoric by President Donald Trump and prospects of a border tax are “worrisome” for global companies. Deere’s Samuel Allen says that “any form of protectionism or nationalism, on the whole, is not beneficial for a company like ours, or any global company.” While Allen notes that a border adjustment tax slapping a 20 percent tariff on imports could help Deere, he says the company is “very concerned” about the proposal’s potential impact on its farmer customers. Allen stated: “If, as a result of the adjustment tax, it has an unintended consequence of causing countries like China and Mexico to buy their ag commodities from other countries, that would be negative for U.S. farmers that do a lot of exporting to China, Canada and Mexico.” Mexico, the top buyer of U.S. corn, has threatened to counter any proposed tax or negative trade impacts from changes to the North American Free Trade Agreement to purchase agricultural commodities from other nations.
From the National Association of Farm Broadcasting news service.