A significant portion of LEXION combines manufactured in Omaha and shipped to Canada, will be relocated to Germany, according to CLAAS, as rising U.S. tariffs have increased production costs. To remain competitive, the agricultural equipment manufacturer says it must move operations overseas.
A CLAAS spokesperson said that while work is moving abroad, no layoffs are planned at the Omaha plant.
"If it's true that Claas is going to keep employment as is and there's not going to be any job loss, then there's going to have to be a nimble workforce so that they can instead either produce something else or take some other role within the company," said Creighton Economics Professor Kristie Briggs.
The move comes after the Trump administration doubled from 25% to 50% tariffs on imported steel and aluminum. Briggs said this rate is significantly higher than historical norms.
"The 50% tariff rate, though, is quite high. I do know that that's certainly the case. The average tariff rate before 2010 was approximately 5%," Briggs said.
Because CLAAS is a global company, they say they've been able to balance "currency fluctuation and tariffs." Briggs says moving production is likely how they're able to do so.
"It's the lack of certainty around costs for them that makes it difficult for them to know how they should best behave, where they should produce, and who they should employ in which country. Uncertainty, I think, is really driving some of the behaviors of companies like Claas, trying to find a place that is more stable and understanding," Briggs said.
Due to confidentiality, CLAAS could not share sales figures, but Briggs says such a large-scale move could have ripple effects on the Nebraska market.
"Even though the United States is quite nimble and that we adjust and we thrive, that that takes time and while that's happening, it's going to, it has the potential to impact individuals' lives as we adjust to what becomes the new norm," Briggs said.
Governor Jim Pillen visited Harsewinkel, Germany, in November 2024. During the trip, he said, "CLAAS is an important partner for Nebraska, a success story and a role model for transatlantic cooperation between German companies and the agricultural communities in Nebraska."
KMTV asked the Governor for an interview, but a spokesperson told me he'd be busy all week.
Despite facing increased production costs from U.S. customs duties on components, CLAAS said it remains committed to American operations by continuing to build all U.S. combines in Omaha, expanding its R&D center, establishing new training programs, and strengthening its U.S. supplier relationships while pledging to maintain stable prices through 2025.
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