Trump threatens 35% tariff as ‘retribution’ for companies that offshore jobs

The incoming vice president said the move indicated that the incoming administration would face up to USA -based companies when needed and use a carrot-and-stick approach to prevent them from offshoring jobs.

Trump said he’d impose a 35 percent tax, called a tariff, on companies that close US factories, cut American jobs, then relocate overseas and try to sell their products back to the United States. The state government of IN had IN return promised tax breaks to the tune of millions of dollars for the company.

I will give credit where it’s due. Fortune says the company expressed satisfaction over the “deal” and incentives discussed with Trump.

“It’s not specific to Carrier”, Priebus said.

Why was it a bad thing for Trump to do and good thing for California?

The Carrier saga, however, remains a battle of ideals.

Rexnord made the announcement just days after Trump had negotiated a deal to keep Carrier from firing 1,100 workers at its Indianapolis plant. 800 jobs that were in danger of being lost are now safe, but there are also now 1,300 jobs moving to Mexico.

“I don’t think it’s picking winners and losers at all”, Pence said.

A 45 percent tariff on Chinese-made goods could drive up USA retail prices on those goods by an average of about 10 percent, Capital Economics has calculated. Its parent company, United Technologies, won’t have to worry about losing billions in government contracts, a possibility that apparently became part of the negotiations.

Dawnn Kinnard is a second-generation Carrier worker whose father still works there too, after 44 years. As Slaper puts it, Trump and Pence twisted Carrier’s arm for political reasons, not economic ones. Yes, I think it will work all over the nation. It’s wonderful that Carrier has agreed to keep any jobs in IN, but it’s only 800 jobs. “The gap left open by one investor will be filled by another investor”.

Also, if companies stay, is he going to offer them “incentives” as well like he did for Carrier?

Trump began his Twitter message with the carrot, saying the United States will “substantially reduce taxes and regulations on businesses”.

Carrier’s statement about the need to improve the “competitiveness of the US and of American workers” is unsettling if it means bringing our business climate and labor costs more in line with Mexico’s, or demanding government subsidies. In a flyer distributed to membership Monday, United Steelworkers Local 1999 confirmed numbers it says it received from the company last week: 730 production and maintenance jobs and 70 management jobs of 1,400 that were being sent to Mexico will remain in Indianapolis.