Two U.S. senators are urging the Commerce Department to launch a national security, arguing that offshoring production to Mexico is undermining U.S. manufacturing and jobs.
In a letter to Commerce Secretary Howard Lutnick, Sens. Tammy Baldwin, (D-Wisconsin), and Bernie Moreno, (R-Ohio), called for a Section 232 investigation into heavy equipment imports, including agricultural implements, construction and mining equipment, forestry equipment, heavy machinery and related parts.
The request comes as the Trump administration prepares for a scheduled review of the U.S.-Mexico-Canada Agreement later this year and continues to rely on Section 232 national security investigations as a legal pathway for tariffs on key industries.
Senators cite offshoring, job losses
Baldwin and Moreno said major manufacturers — including Deere & Co., Caterpillar and CNH Industrial — have shifted production to Mexico while continuing to sell equipment into the U.S. market, a trend they said has cost American manufacturing jobs.
The senators pointed to layoffs and plant closures tied to production moves abroad, including CNH layoffs in Wisconsin and a plant closure in Iowa, as well as job cuts tied to Deere production shifts.
“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.
They also argued that duty-free treatment under USMCA has incentivized manufacturers to relocate production to Mexico, and said any Section 232 action should be paired with changes to the trade agreement.
Manufacturing footprint in Mexico expands
Major heavy equipment manufacturers have significantly expanded their manufacturing presence in Mexico over the past several decades.
Click here to see more...