If John Deere moves production to Mexico, Trump threatens a 200% tariff.

• On Monday, former President Donald Trump threatened John Deere with a 200% tariff if the agricultural manufacturer moves some of its production to factories in Mexico.
• Some of John Deere's production models will be moved to Mexico, resulting in layoffs at certain Iowa facilities.
• After hours trading, Deere's shares dropped approximately 1.6% following Trump's threat, which was made shortly after Monday's closing bell.

On Monday, former President Donald Trump threatened to impose a 200% tariff on an agricultural manufacturer that moves its production to factories in Mexico.

The Republican nominee stated at a policy roundtable in Smithton, Pa., hosted by the Protecting America Initiative that they had recently announced plans to relocate a significant portion of their manufacturing business to Mexico.

Trump stated that he is currently informing John Deere that if they continue with that action, they will face a 200% tariff on all their products sold in the United States. This aligns with Trump's campaign promise to prioritize tariffs in his economic policy.

John Deere has revealed plans to move production of certain models to Mexico, resulting in layoffs at Iowa facilities.

Trump stated on Monday that it is harming both farmers and manufacturing.

John Deere was contacted by CNBC for a comment and responded by directing them to a webpage on their website titled "John Deere's Commitment to U.S. Manufacturing," which highlights their investments in American factories and workers.

To position our U.S. factories for highly value-additive activities, we sometimes need to move less complex operations, such as cab assembly, to other locations.

Trump's comments about John Deere were off the cuff and appeared to be prompted by the tractors at the event.

After hours trading, Deere shares were down 1.7% as of 6 p.m. ET following Trump's threat made shortly after Monday's closing bell.

On Monday, the former president issued similar threats to automakers that produce vehicles in Mexico.

""The cars entering here will face big tariffs of 100 to 200%, making them uncompetitive, so it's best to stay in Michigan," he stated."