“I want John Deere and Case and all of – they’re great companies, Caterpillar… I want these companies to give it to you in the form of lower tractor and equipment costs,” Trump told hundreds of farmers and ranchers gathered under drizzle at an event on the South Lawn of the White House.

Deere & Co shares dropped two per cent after the statement. Case IH manufacturer CNH Industrial fell one per cent while Caterpillar Inc was down nearly 1.2 per cent in late-session trading.

The three companies could not immediately be reached for comment.

Trump seeks support from struggling farmers

Trump called for lower prices in an aside during a speech that otherwise focused on shoring up support among the Republican president’s loyal constituency of rural voters, who have backed Trump in all three of the last presidential races.

For the fourth straight year, U.S. crop producers are facing tight margins, high production costs and low commodity prices – and are struggling financially – despite near-record government payments.

The Trump administration is distributing $12 billion (C$16.7 billion) in aid to U.S. farmers — a move that farm trade groups and agricultural economists have said is helpful in the short-term but will not fully compensate farmers for financial losses that have topped $30 billion in recent years.

On Friday, Trump said he would seek even more such aid for farmers from Congress. More than 50 farm-interest groups, such as the American Farm Bureau Federation, are urging Congress to approve additional aid in a military funding package.

Trump pledges new loan guarantees

The event happened as the administration finalized new biofuel blending mandates for U.S. oil refiners, requiring them to mix more of the fuels made from corn and other agricultural products into the nation’s gasoline and diesel than initially proposed, in an apparent win for farmers.

Trump also said the U.S. Small Business Administration would open up new loan guarantees for farmers and food suppliers.

Farmers are entering the critical spring planting season under a cloud of uncertainty as the U.S.-Israeli war with Iran disrupts global trade, causing fertilizer and diesel costs to spike.

The long-term U.S. trade relationship with China also remains unclear amid the ongoing trade war launched by Trump’s administration with the country, the world’s top soy importer.

Rural voters constitute a fifth of the U.S. electorate, and they favored Trump by a two-to-one margin over Democrat Kamala Harris in the 2024 presidential election.

— Additional reporting by Bhargav Acharya

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Business groups said China has allowed some U.S.-made pharmaceuticals to enter the country without paying the 125 per cent duties that Beijing imposed earlier this month in response to Trump’s 145 per cent tariffs on U.S. imports.

Also, a list of 131 product categories said to be under consideration for exemptions was circulating among some businesses and trade groups. Reuters could not verify the list, which includes vaccines, chemicals and jet engines, and China has not yet communicated publicly on the issue.

Signs of de-escalation

Trump’s administration has in recent days signaled it is looking to de-escalate the confrontation between the world’s two largest economies, and Trump himself told TIME magazine that talks were taking place and that Chinese President Xi Jinping had called him.

“I don’t think it’s a sign of weakness on his behalf,” he said.

China denied that discussions were happening.

“China and the U.S. are NOT having any consultation or negotiation on #tariffs. The U.S. should stop creating confusion,” the Chinese Embassy in Washington wrote on social media.

In addition to the steep tariffs on China, Trump has announced targeted tariffs on dozens of other countries, which he has suspended until July 9. That has set off a scramble among U.S. trading partners to strike individual trade deals with Washington before the deadline — a tall order, given that past trade deals have typically taken years to negotiate.

Close to a deal with Japan, Trump says

Trump told reporters at the White House that he was very close to a deal with Japan. That is seen by analysts as a “test case” for other bilateral trade agreements, though talks could be difficult. Some expect Prime Minister Shigeru Ishiba and Trump to announce a pact when they meet at the G7 summit in Canada in June.

Trump separately told TIME that he had made “200 deals” that would be completed within three to four weeks, though he declined to provide specifics. He said he would consider it a “total victory” if tariffs were still 20 per cent to 50 per cent a year from now.

The office of the U.S. Trade Representative said it had held a productive meeting with South Korea on Friday.

Trump has argued that his thicket of trade barriers will revive U.S. manufacturing industries that have been hollowed out by global competition. Economists, however, broadly warn that they would lead to higher prices for U.S. consumers and increase the risk of recession.

In addition to the country-specific tariffs, Trump has also imposed a blanket 10 per cent tariff on all other U.S. imports and higher duties on steel, aluminum and autos. He has also floated additional industry-specific levies on pharmaceuticals and semiconductors.

European and Asian stocks headed for a second straight week of gains on Friday and the dollar eyed its first weekly rise in more than a month, as investors took comfort from signs the U.S. and China were prepared to pull back from their trade war. Wall Street’s main indexes opened slightly lower.

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Speaking to a crowd of supporters in Arizona, Trump also said he would not let the canal fall into the “wrong hands,” warning of potential Chinese influence on the passage.

After the event, he posted an image on Truth Social of an American flag flying over a narrow body of water, with the comment: “Welcome to the United States Canal!”

“Has anyone ever heard of the Panama Canal?” Trump said at AmericaFest, an annual event organized by Turning Point, an allied conservative group. “Because we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”

“It was given to Panama and the people of Panama, but it has provisions,” Trump said of the canal, which was once owned by the United States but was handed over to Panama decades ago.

“If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, quickly and without question.”

In a recorded message released by Panama’s President Mulino on Sunday afternoon, the nation’s leader said that Panama’s independence was non-negotiable and that China had no influence on the canal’s administration. He also defended the passage rates Panama charged, saying they were not set “on a whim”.

China does not control or administer the canal, but a subsidiary of Hong Kong-based CK Hutchison Holdings has long managed two ports located on the canal’s Caribbean and Pacific entrances.

The United States largely built the canal and administered territory surrounding the passage for decades. But the United States and Panama signed a pair of accords in 1977 that paved the way for the canal’s return to full Panamanian control. The United States handed over control of the passage in 1999 after a period of joint administration.

“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama),” Mulino said in his statement, which was released on X.

Trump then responded to Mulino: “We’ll see about that!”

The waterway, which allows up to 14,000 ships to cross per year, accounts for 2.5 per cent of global seaborne trade and is critical to U.S. imports of autos and commercial goods by container ships from Asia, and for U.S. exports of commodities, including liquefied natural gas.

It is not clear how Trump would seek to regain control over the canal, and he would have no recourse under international law if he decided to make a play for the passage.

This is not the first time Trump has openly considered territorial expansion.

In recent weeks, he has repeatedly mused about turning Canada into a U.S. state, though it is unclear how serious he is about the matter. During his 2017-2021 term, Trump expressed interest in buying Greenland, an autonomous territory of Denmark. He was publicly rebuffed by Danish authorities before any conversations could take place.

Trump repeated the idea on Sunday, in a statement announcing his pick for ambassador to Denmark, Ken Howery, a former ambassador to Sweden.

“For purposes of National Security and Freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity,” he wrote on Truth Social.

— Reporting by Gram Slattery in West Palm Beach, Florida, and Alexandra Ulmer in Phoenix; Additional reporting by Diego Ore in Mexico City and Elida Moreno in Panama City.

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“As you know, they’ve announced a few days ago that they are going to move a lot of their manufacturing business to Mexico,” Trump said at an event held in western Pennsylvania. “I am just notifying John Deere right now that if you do that, we are putting a 200 per cent tariff on everything that you want to sell into the United States.”

Earlier this year, John Deere announced that it was laying off hundreds of employees in the American Midwest and increasing its production capacity in Mexico, a decision that upset workers and some political leaders.

Trump has frequently said he would slap automakers that move their production to Mexico with a 200 per cent tariff, but this appears to be the first time he has extended that threat to an agricultural equipment manufacturer.

Shares in John Deere fell more than 1.5 per cent in after-hours trade on Monday after closing up 0.75 per cent. A representative for the company did not respond to a request for comment.

Speaking to a gathering of farmers in a rural area outside of Pittsburgh, Trump also said he would press Chinese President Xi Jinping to honor a deal to purchase $50 billion (C$67.7 billion) of U.S. agricultural goods.

During the so-called “Phase 1” trade deal inked between China and the United States during Trump’s 2017 to 2021 term, the United States agreed to cut some tariffs on Chinese goods in exchange for pledges to purchase more American agricultural products, energy and manufactured goods. At the time, Trump said China would buy $50 billion in U.S. agricultural products, though Chinese purchases fell well short of that figure.

“Probably my first call – I’m going to call President Xi – I’m going to say you have to honor the deal you made. We made the deal, you buy $50 billion worth of American farm products, and I guarantee you, he will buy it, 100 per cent he will buy it,” Trump said.

Farmers and industrial workers are a crucial part of Trump’s coalition, and turning out these constituencies will be important if he is to beat Vice President Kamala Harris, the Democratic nominee, in the Nov. 5 election. That is especially true in Pennsylvania, where polls consistently show a razor-thin race.

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