John Deere CEO Samuel Allen is concerned about a U.S. House proposed border adjustment tax to compensate for lost revenue from a cut in the corporate tax rate from 35 percent to 20 percent.
The border adjustment would tax imports, while rebating taxes on exports. Allen told CNBC that as a net exporter, Deere would benefit from the plan, but he says Deere’s farmer customers would be hurt if trading partners like China and Mexico shop elsewhere for ag commodities.
Allen also expressed concern about protectionism not being beneficial for multinational companies such as Deere.
Allen says fair trade is “much more efficient.”