Trump Tariffs Spur Demand for Brazilian Tractors
- AGCO turns to Brazil to avoid U.S. tariffs on Chinese products
- It’s the latest unintended consequence of Trump’s trade war
Photographer: Balint Porneczi/Bloomberg
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News that one of the top U.S. tractor companies is dropping made-in-China products should be music to the Trump administration’s ears -- except for the fact that it’s replacing them with machines made in Brazil.
AGCO Corp. is turning to Brazilian factories for a new line of low-horsepower tractors to avoid the 25 percent tariff put in place by the U.S on Chinese products, Chief Executive Officer Martin Richenhagen told reporters in Sao Paulo Tuesday. He projects tractor exports from Brazil to the U.S. to reach 4,000 to 5,000 units next year.