Senators Seek Tariffs on Mexican-Made Equipment From 29 Caterpillar Facilities
Senators Baldwin and Moreno have petitioned the Commerce Department for a Section 232 national security probe into heavy equipment imports from Mexico, citing offshoring by Caterpillar, Deere and CNH Industrial. Caterpillar’s 29 Mexican facilities employ about 14,000 workers, raising U.S. manufacturing job loss concerns and potential tariff risks.
1. Senators Call for Section 232 Probe
Senators Tammy Baldwin and Bernie Moreno have urged the Commerce Department to launch a Section 232 national security investigation into heavy equipment imports from Mexico, arguing that offshoring construction, agricultural, mining and forestry machinery undermines U.S. manufacturing and costs American jobs.
2. Caterpillar’s Mexican Footprint
Caterpillar operates 29 facilities across Mexico, including manufacturing, remanufacturing and parts distribution, employing roughly 14,000 workers on 21 campuses, a footprint senators say has incentivized job shifts away from U.S. plants.
3. Potential Tariff and Trade Agreement Changes
The senators propose pairing any Section 232 action with amendments to USMCA duty-free provisions, warning that targeted tariffs could restore domestic production, protect jobs and alter cost structures for major equipment makers.