Senators Push Tariffs on Mexican Heavy Equipment Imports

Key Details Two bipartisan U.S. senators are calling on the Commerce Department to investigate heavy machinery imports from Mexico under national security grounds. Sens. Tammy Baldwin (D-Wisconsin) and Bernie Moreno (R-Ohio) want a Section 232 investigation into agricultural implements, construction equipment, mining gear, and related parts. Why It Matters Major manufacturers like Deere & Co., Caterpillar, and CNH Industrial have shifted significant production to Mexico while continuing to sell into the U.S. market. This strategy has resulted in American plant closures and job cuts, including CNH layoffs in Wisconsin and Deere production relocations. The Trade Impact The senators argue that duty-free treatment under USMCA has incentivized offshoring. They contend manufacturers are eliminating U.S. jobs while paying lower Mexican wages, then profiting by shipping products back stateside. Any Section 232 action should be paired with trade agreement modifications, they said. Current Landscape Caterpillar operates roughly 29 facilities across Mexico employing 14,000 workers. John Deere is expanding with a new Nuevo León plant launching in 2026. CNH's Querétaro facility employs over 1,000 people producing tractors and implements. This investigation could reshape equipment sourcing as the Trump administration reviews the U.S.-Mexico-Canada Agreement later this year.