Bipartisan US Senators Want Investigation Into Farm Equipment Companies Moving Jobs to Mexico
Why It Matters
Idaho’s agricultural economy depends heavily on reliable, American-made farm equipment. Tractors, combines, and heavy machinery produced by companies like John Deere, Caterpillar, and Case New Holland are essential tools for Idaho’s farmers and ranchers — making any disruption to the domestic manufacturing pipeline a concern for the state’s $9 billion agricultural industry.
A new push by a bipartisan pair of U.S. senators to investigate major agricultural machinery manufacturers over job offshoring to Mexico could have ripple effects on equipment supply chains, pricing, and trade policy that reach every corner of Idaho’s farm country.
What Happened
On Thursday, Sens. Tammy Baldwin, a Wisconsin Democrat, and Bernie Moreno, an Ohio Republican, formally asked Commerce Secretary Howard Lutnick to open an investigation into three of the largest agricultural and industrial machinery manufacturers in the United States: John Deere, Caterpillar, and Case New Holland (CNH).
The senators allege that all three companies have laid off American workers in recent years while shifting manufacturing operations to Mexico — moves they say rewarded shareholders at the expense of blue-collar workers and hollowed out Midwest manufacturing communities. The request asks the Commerce Department to act under Section 232 of the Trade Expansion Act of 1962, a law that allows the federal government to impose tariffs when national security interests are at stake.
“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,” Baldwin and Moreno wrote in their letter to Lutnick. “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.”
Representatives for John Deere, Caterpillar, and CNH did not immediately respond to requests for comment.
By the Numbers
- $18.2 billion — Amount Caterpillar paid out through dividends and stock buybacks in recent years, according to the senators’ letter.
- $8.4 billion — John Deere’s shareholder payouts over the same period.
- $1.7 billion — CNH’s shareholder payouts during the period in question.
- 3,600+ — Union employees laid off by John Deere after the company moved production from Iowa to Mexico.
- 420+ — Workers affected by CNH facility closures and layoffs in Wisconsin and Iowa, including 220 let go from a Racine facility in 2024 and roughly 200 more set to lose jobs when a Burlington, Iowa, plant closes.
Zoom Out
The senators’ request reflects a broader national frustration with U.S. manufacturers who benefit from American markets and infrastructure while shifting production abroad. The use of Section 232 — the same legal mechanism used to justify steel and aluminum tariffs under previous administrations — signals an aggressive posture that crosses traditional party lines on trade.
For Idaho and the broader Mountain West, the consequences of agricultural equipment offshoring extend beyond job losses in the Midwest. When domestic manufacturing capacity shrinks, supply chains become more vulnerable to disruptions, lead times grow longer, and equipment costs can rise — all of which hit Idaho’s farming and ranching operations directly. The state’s agricultural producers already face tight margins, and cost increases on essential equipment compound those challenges.
The bipartisan nature of the effort also underscores a growing consensus in Washington that free trade orthodoxy has limits, particularly when companies receiving the benefits of the U.S. consumer market shift labor costs overseas while continuing to profit from American buyers. Idaho’s congressional delegation has historically been cautious about broad tariff measures, but protecting domestic agricultural supply chains aligns closely with the state’s core economic interests.
What’s Next
The Commerce Department has not yet responded publicly to the senators’ request. If Secretary Lutnick agrees to open a Section 232 investigation, the process would involve a formal review of whether the offshoring of farm equipment manufacturing poses a threat to national security — a determination that could ultimately lead to new tariffs on equipment imported from Mexico.
Baldwin and Moreno are expected to continue pressing for action, and other lawmakers from agricultural and manufacturing states may add their voices to the call. Any tariff action resulting from an investigation would likely face pushback from the equipment manufacturers, who have argued that offshoring is necessary to stay globally competitive.
Idaho farmers, equipment dealers, and agricultural industry groups will be watching closely as the investigation request works its way through the Commerce Department.
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