A bipartisan pair of U.S. senators is calling on the Commerce Department to investigate major agricultural machinery manufacturers over claims the companies have eliminated American manufacturing jobs while rewarding shareholders with billions of dollars in dividends and stock buybacks — a development drawing close attention from Idaho’s farming communities that depend on this equipment to keep operations running.
Sen. Tammy Baldwin, a Wisconsin Democrat, and Sen. Bernie Moreno, an Ohio Republican, sent a formal letter Thursday to Commerce Secretary Howard Lutnick requesting an investigation into John Deere, Caterpillar, and Wisconsin-based Case New Holland, or CNH. The senators allege the companies have systematically moved manufacturing jobs to Mexico while continuing to post substantial profits and deliver generous returns to investors.
For Idaho’s agricultural economy — anchored in part by the Lewis-Clark Valley’s grain, legume, and timber industries — the health of the domestic farm equipment manufacturing sector carries direct consequences. Farmers across Nez Perce County and throughout the Palouse rely heavily on equipment from John Deere and CNH to plant, tend, and harvest crops that drive the regional economy.
Senators Request Section 232 Investigation
The two senators asked Lutnick to open an investigation under Section 232 of the Trade Expansion Act of 1962, a federal law that allows the executive branch to impose tariffs on imported goods when their entry into the United States is determined to threaten national security. The same legal mechanism has been used in recent years to justify tariffs on steel, aluminum, and automobiles.
Baldwin and Moreno argued that offshoring critical agricultural and construction equipment manufacturing poses a legitimate national security concern. If supply chains for tractors, combines, and heavy machinery are routed through foreign countries — particularly those with lower labor standards — the United States could face serious vulnerabilities in both its food production capacity and infrastructure development during times of crisis or conflict.
“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,” the senators 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.”
The senators outlined specific figures to support their allegations. John Deere paid out $8.4 billion to shareholders through dividends and stock buybacks in recent years. Caterpillar distributed $18.2 billion to investors over the same period. CNH paid out $1.7 billion. Meanwhile, the companies shed thousands of American manufacturing positions and shifted production south of the border.
Thousands of American Workers Displaced
The documented job losses cited by the senators are substantial. John Deere laid off more than 3,600 union employees after moving production from Iowa to Mexico. CNH eliminated approximately 220 positions from its Racine, Wisconsin, facility in 2024 and shifted that work to Mexico. Additionally, the senators noted that all roughly 200 workers at a CNH plant in Burlington, Iowa, are expected to lose their jobs after the company announced in January it would close that facility entirely.
These cuts have hit Midwest manufacturing communities especially hard, but the ripple effects extend far beyond those factory floors. In agricultural states like Idaho, the concern is both practical and economic. If domestic production of farm equipment shrinks, supply chain disruptions — as seen during and after the COVID-19 pandemic — can leave farmers waiting months for replacement parts or new machinery during critical planting and harvest windows.
Port of Lewiston officials and regional agricultural producers have previously noted that equipment availability and parts delays represent ongoing operational challenges. The Port of Lewiston, as the most inland seaport on the West Coast, handles significant volumes of grain and agricultural commodities, making the efficiency and reliability of farm equipment central to the regional economy’s performance.
Representatives for John Deere, CNH, and Caterpillar did not respond to requests for comment before publication of the senators’ letter.
What Comes Next
The Commerce Department has not publicly confirmed whether it will open a formal Section 232 investigation in response to the senators’ request. If such an investigation is launched, it typically involves a review period that can last several months before any tariff recommendations are made to the president. Should tariffs be imposed on agricultural machinery manufactured in Mexico and imported into the United States, the policy could affect equipment pricing for Idaho farmers — a trade-off that agricultural advocates will likely weigh carefully as the process moves forward.
Idaho’s congressional delegation has not yet issued formal statements responding to the Baldwin-Moreno letter. Statewide developments on this issue and related trade policy can be followed at Idaho News and through the Idaho News Network.