A bipartisan pair of U.S. senators from the Midwest on Thursday asked the Commerce Department to investigate major agricultural machinery manufacturers, saying they paid shareholders handsomely while offshoring jobs.
Sens. Tammy Baldwin, a Wisconsin Democrat, and Bernie Moreno, an Ohio Republican, asked Commerce Secretary Howard Lutnick to open an investigation under a law that allows tariffs to be used for national security purposes.
John Deere, Caterpillar and the Wisconsin-based Case New Holland had all laid off U.S. workers in recent years while moving manufacturing jobs to Mexico. The moves hollowed out Midwest industrial towns but made the companies enormous profits, Baldwin and Moreno wrote.
“These companies should not be allowed to eliminate American jobs, pay Mexican workers poverty wages, and then ship products back to the U.S. for additional profit on the backs of our communities,” they wrote. “They argue that offshoring is necessary to remain competitive, but when it comes time to pay executives or shareholders, they are never short of money.”
The companies have all delivered generous payments to shareholders in recent years, the senators said. John Deere has paid $8.4 billion, CNH has paid $1.7 billion and Caterpillar has paid $18.2 billion through dividends and stock buybacks, they wrote.
But payouts for investors came at the expense of their blue-collar workforce, Baldwin and Moreno wrote.
CNH laid off 220 workers from its Racine, Wisconsin, facility in 2024 and moved production to Mexico. All of the roughly 200 CNH workers in a Burlington, Iowa, facility are set to lose their jobs after the company announced in January it would close the plant. And John Deere laid off more than 3,600 union employees after moving production from Iowa to Mexico, the senators said.
Representatives for the companies did not immediately return messages seeking comment Thursday.
Section 232
The lawmakers asked Lutnick to open an investigation that could result in so-called Section 232 tariffs to deter the companies from moving production to Mexico.
“These companies and their executives should not be rewarded for destroying American jobs or permitted to import their products without facing a penalty,” they wrote.
The tariffs, named for the section of the 1962 law that created them, permits the administration to levy tariffs for national security purposes. Though created in 1962, no administration used them until President Donald Trump’s first term, when he imposed tariffs on steel and aluminum.
The administration now “has a unique opportunity,” the senators said, to prevent heavy equipment manufacturers from moving more jobs out of the country.
However, they added that any Section 232 investigation would be limited by a free trade agreement with Canada and Mexico that Trump approved in his first term. They called for the administration to “address … issues” created by the agreement, known as the U.S.-Mexico-Canada trade agreement.
The agreement “has incentivized major heavy equipment manufacturers to locate production in Mexico,” they wrote. “Any efforts that the Administration takes solely on Section 232 will be weakened by the shortcomings that currently exist in USMCA.”
Spokespeople for the Commerce Department and White House did not immediately return messages seeking comment.
MAGA appeal
The senators’ letter appeals to key parts of Trump’s political coalition.
Throughout his decade in politics, he has focused messaging on protecting farming and reviving domestic manufacturing industries.
In both his victorious presidential elections, the Republican won unusually large slices of union workers in swing states with legacy manufacturing industries while running up a major advantage with rural voters.
Trump has aggressively — and controversially — employed tariffs to encourage domestic production.
He is scheduled to host nearly 1,000 farmers at the White House on Friday.
