John Deere to Invest $20 Billion in US Manufacturing Over the Next Decade

The farm equipment maker dispels rumors that it would freeze domestic manufacturing.
John Deere to Invest $20 Billion in US Manufacturing Over the Next Decade
A John Deere tractor cultivates a field in Loami, Ill., in a file photo. Seth Perlman/AP Photo
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John Deere plans to invest $20 billion in U.S. manufacturing over the next 10 years, the company recently announced.

In a June 6 news release, John Deere said that its investment price tag reaffirmed its long-term commitment to “building and growing right here at home.” The farm equipment maker rebutted rumors that it would be scaling back domestic manufacturing.

John May, chairman and CEO, stated that John Deere aims to continue investing in advanced products and solutions and manufacturing capabilities.

“Over the next decade, we will continue to make significant investments in our core U.S. market,“ May said in a statement. ”This underscores our dedication to innovation and growth while staying cost-competitive in a global market.”

Established in 1837, John Deere has more than 30,000 employees across 60 locations in 16 states.

The company has also been in the crosshairs of President Donald Trump’s tariff rhetoric. Last year, John Deere announced that it was shifting some production from Iowa to Mexico by the end of 2026.

This garnered Trump’s attention. In September, speaking at a policy roundtable in Pennsylvania, the then-presidential candidate threatened to impose a 200 percent tariff on the agricultural machinery manufacturer’s products.

“I’m just notifying John Deere right now: If you do that, we’re putting a 200 percent tariff on everything that you want to sell into the United States,” Trump stated.

Days later, the company confirmed that it was not moving production south of the border. “Instead, we’ve strategically leveraged our footprint in Mexico for cab production,” a company spokesperson said in a statement to the press.

This year, John Deere has laid off about 400 workers, attributing the reduction to falling orders.
Shares of John Deere have surged 23 percent this year to above $500.

Private Investment Influx

Since the beginning of Trump’s second term, the United States has scored trillions of dollars in private domestic and foreign investment.

This year, Apple, Nvidia, IBM, Kraft Heinz, Johnson & Johnson, and many other companies have pledged billions in U.S. manufacturing, research and development, and the expansion of existing facilities.

“I think we probably have close to $9 trillion of investments coming into this country,” the president said in an interview with NBC’s “Meet the Press” last month. “If you look at other presidents, there’s never been anything like that.”

A key plank of the current administration’s economic agenda is to resuscitate America’s manufacturing base. Tariffs are being employed to help jump-start the revival and reverse the decades-long trend of shrinking manufacturing jobs and the industry’s contribution to growth.

Manufacturing payrolls have declined by about 7 million since the 1979 peak of nearly 20 million. Additionally, manufacturing as a share of U.S. GDP is about 10 percent, down from around 28 percent in the 1950s.

“We will supercharge our domestic industrial base, we will pry open foreign markets and break down foreign trade barriers, and ultimately, more production at home will mean stronger competition and lower prices for consumers,” the president said at his April 2 announcement of sweeping global reciprocal tariffs.

While the United States is witnessing a surge in manufacturing investment, ITR economist Taylor St. Germain does not attribute the trend to tariffs.

In a June 2 podcast, St. Germain highlighted policy incentives, proximity to customers in the market, and the availability of skilled labor and training.

“There are so many reasons businesses are coming back to the U.S.,” he said, adding that the United States will remain “the best bet” for companies.

Industry data from the Institute for Supply Management indicates that U.S. manufacturing activity has slowed this year, sliding into contraction for the third consecutive month in May.

Executives in various manufacturing-related sectors have blamed several factors for the decline, including tariffs, broader commodity markets, and market uncertainty.

Andrew Moran
Andrew Moran
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Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of "The War on Cash."