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

Two U.S. senators from across the aisle are pushing the Commerce Department to investigate major agricultural machinery manufacturers — including John Deere, Caterpillar, and Case New Holland — over allegations that the companies have offshored American manufacturing jobs to Mexico while rewarding shareholders with billions of dollars in payouts. The move has drawn attention from farm-dependent states like Idaho, where agricultural equipment is not a luxury but a necessity for the ranchers, growers, and dairy operators who form the backbone of Canyon County’s economy.

Background: A Bipartisan Push Against Offshoring

Sen. Tammy Baldwin, a Wisconsin Democrat, and Sen. Bernie Moreno, an Ohio Republican, formally requested Thursday that Commerce Secretary Howard Lutnick open an investigation under Section 232 of the Trade Expansion Act — a federal law that allows tariffs to be imposed on imports deemed a threat to national security.

Their letter argues that John Deere, Caterpillar, and Wisconsin-based Case New Holland have each laid off American workers in recent years while shifting manufacturing operations to Mexico. According to the senators, the companies have simultaneously delivered enormous returns to investors — John Deere paid out an estimated $8.4 billion in dividends and stock buybacks, Caterpillar $18.2 billion, and CNH $1.7 billion — even as they eliminated blue-collar jobs in American communities.

“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 the three companies did not return requests for comment as of Thursday.

Key Details: Layoffs and Plant Closures Hit Midwest Hard

The scale of job losses detailed in the senators’ letter is significant. 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, eliminating roughly 200 jobs. John Deere, meanwhile, laid off more than 3,600 union employees after shifting production from Iowa to Mexico.

The senators are asking the Commerce Department to investigate whether this pattern of offshoring agricultural and heavy equipment manufacturing poses a national security concern — and whether Section 232 tariffs could be used to discourage further job losses. Section 232 has previously been used to impose tariffs on steel and aluminum imports, so applying it to farm machinery would represent a notable expansion of the tool.

For more on Idaho’s position in national trade and agriculture policy discussions, visit Idaho News.

Impact on Canyon County Residents and Idaho Agriculture

While the plant closures highlighted in the letter are concentrated in the Midwest, the implications extend directly to agricultural communities across the Treasure Valley. Canyon County is one of the most productive agricultural counties in Idaho, with operations spanning row crops, dairy, cattle, specialty crops, and everything in between. Farmers and ranchers in the Nampa, Caldwell, and Middleton areas depend heavily on equipment manufactured by precisely the companies named in the senators’ letter — John Deere and Case New Holland equipment is a common sight from Lake Lowell to Deer Flat and across the farmland stretching toward the Oregon border.

When American manufacturing of that equipment is moved overseas, it raises legitimate questions about supply chain reliability, parts availability, and long-term pricing. Agricultural producers in Canyon County and across Idaho have already faced years of rising input costs, and any disruption to equipment supply chains or upward pressure on machinery prices hits family farming operations hardest.

Beyond equipment costs, Idaho’s agricultural economy depends on a stable, competitive manufacturing sector. When companies hollow out American industrial towns in favor of cheaper overseas labor, the ripple effects eventually reach rural communities far beyond the Midwest.

What Comes Next

The Commerce Department has not publicly indicated whether it will open a Section 232 investigation in response to the senators’ request. If an investigation is launched, it could take months before any formal findings or tariff recommendations are issued.

Idaho’s congressional delegation — which includes members who sit on committees overseeing agriculture and trade — has not yet publicly weighed in on the senators’ letter. Canyon County residents with concerns about how agricultural equipment offshoring may affect Idaho farming operations are encouraged to contact their U.S. representatives and senators directly.

Farmers, ranchers, and agricultural businesses in the Nampa and Caldwell areas can also stay informed through local farm bureaus and the Idaho Farm Bureau Federation, which monitors federal trade and manufacturing policy on behalf of Idaho’s agricultural community.