Bipartisan US Senators Demand Investigation Into Farm Equipment Companies Moving Jobs to Mexico

SANDPOINT, Idaho — A bipartisan pair of United States senators from the Midwest is pushing the Commerce Department to investigate major agricultural machinery manufacturers, alleging that companies including John Deere, Caterpillar and Case New Holland have offshored American manufacturing jobs to Mexico while delivering billions of dollars in payouts to shareholders and executives. The move carries direct implications for Idaho farmers and agricultural operations across Bonner County and the broader Panhandle region who depend on this equipment to keep their operations running.

Sen. Tammy Baldwin, a Wisconsin Democrat, and Sen. Bernie Moreno, an Ohio Republican, sent a joint letter to Commerce Secretary Howard Lutnick on Thursday asking him to open an investigation under Section 232 of the Trade Expansion Act of 1962 — a federal law that allows tariffs to be imposed on national security grounds. The senators argue that the offshoring of farm equipment manufacturing weakens the domestic industrial base and leaves American agriculture vulnerable to supply chain disruptions.

What the Senators Are Alleging

According to the letter sent to Secretary Lutnick, all three major manufacturers — John Deere, Caterpillar and the Wisconsin-based Case New Holland — have laid off substantial numbers of American workers in recent years while simultaneously moving manufacturing operations to Mexico. The senators contend the moves have hollowed out Midwest industrial communities while generating enormous corporate profits.

“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. “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 senators backed their claims with financial data, noting that John Deere has paid $8.4 billion in dividends and stock buybacks in recent years, Case New Holland has paid $1.7 billion, and Caterpillar has paid $18.2 billion. Meanwhile, the companies were simultaneously cutting their American workforce.

CNH laid off 220 workers from its Racine, Wisconsin, facility in 2024 and moved that production to Mexico. The company also announced in January that it would close its Burlington, Iowa, plant entirely, leaving roughly 200 additional workers without jobs. John Deere laid off more than 3,600 union employees after relocating production from Iowa to Mexico, according to the senators’ letter.

Representatives for the companies did not immediately return requests for comment.

Why This Matters for Idaho and Bonner County Agriculture

While the investigation focuses on Midwest manufacturing communities, the consequences of these corporate decisions reach far beyond Ohio and Wisconsin. Idaho’s agricultural sector, including farming operations throughout Bonner County, Priest River, Clark Fork and the broader North Idaho Panhandle, relies heavily on the equipment manufactured by these very companies.

John Deere and Case New Holland equipment is a fixture on Idaho farms, from small family operations to larger commercial enterprises that work the fertile land near Pack River and throughout the region. Any disruption in parts supply, any reduction in product quality, or any significant price increases tied to tariff actions could affect Idaho producers directly.

For Idaho farmers already navigating tight margins, volatile commodity prices, and ongoing uncertainty in federal agricultural policy, the stability of their equipment supply chain is not a minor concern. Equipment shortages or price spikes tied to trade policy shifts have historically created real financial hardship for small and mid-sized agricultural operations. Idaho News Network has been tracking how federal trade policy shifts are affecting agricultural communities statewide at idahonews.co.

The bipartisan nature of the Senate request is notable. Baldwin is a prominent Midwest Democrat, while Moreno is a Republican aligned with the current administration’s trade posture. Their joint effort reflects growing cross-party frustration over corporate offshoring practices that critics say prioritize investor returns over American workers and domestic manufacturing capacity.

Section 232 investigations have previously been used to impose tariffs on steel and aluminum imports, moves that reshaped domestic supply chains and raised costs for some manufacturers while providing relief to others. A similar action targeting farm equipment could force companies to reconsider offshore production strategies — or it could result in higher equipment costs passed on to farmers as companies adjust their supply chains.

What Comes Next

The Commerce Department has not publicly indicated whether it will open a Section 232 investigation in response to the senators’ letter. Such investigations typically take several months and can result in tariff recommendations to the president. The White House would then decide whether to act on those recommendations.

Bonner County residents with interests in agriculture, manufacturing, or trade policy are encouraged to contact Idaho’s congressional delegation — Sen. Mike Crapo, Sen. Jim Risch, and Rep. Russ Fulcher — to share their perspectives on how federal trade actions affecting farm equipment manufacturers could impact North Idaho communities. For ongoing statewide coverage of trade and agricultural policy in Idaho, visit idahonews.co and IdahoNewsNetwork.com.