Timeline of planned Carrier factory closing in Indiana
There are now several hundred miles of border barrier separating the United States and Mexico.
That figure dwarfs the $65 million it hoped to save by moving Carrier jobs to Mexico.
“We’re going to build the wall”, Trump said, repeating his vow to construct an impenetrable southern border. And now all of a sudden the company takes the deal, and Trump is known for being somewhat vindictive. “It’s not going to happen”, Trump thundered.
He also sounded notes of populism, saying that “for too long Washington has tried to put us in boxes; they separate us by race, by age, by income, by geography, by place of birth”.
To critics who see other IN factories on the verge of closing, deals like the one at Carrier are unlikely to stem the job losses caused by automation and cheap foreign competition, and the prospect that the White House might directly intervene is also a concern to some economists.
Trump also asserted that people were “pouring in” from regions in the Middle East and that he will suspend immigration from some areas. There is “no reason for them to leave anymore”.
A study published by the Peterson Institute for International Economics estimated that imports from Mexico have displaced 203,000 jobs a year, but the two-way trade has also supported 188,000 jobs due to USA exports headed to Mexico.
When the president-elect said, “We did have a lot of fun fighting Hillary, didn’t we?” the Trump crowd echoed rallies of the past by chanting “Lock her up!”
But “somewhere around the country it’s probably highly likely that it is happening on a weekly basis”, said Judith Stallmann, a professor of applied economics at the University of Missouri’s Truman School of Public Affairs.
And – as if answering Obama’s magic wand question – Trump often regaled his rally audiences with stories about how he’d warn Ford, Nabisco and Carrier that they’d face added costs when they tried to bring their products back from Mexico to sell them here.
Apparently under pressure from Trump, Carrier announced this week it had agreed to keep more than 1,000 jobs at the plant and at its headquarters, while still planning to move more than 1,000 other USA jobs to Mexico.
On Donald Trump’s visit to Carrier in IN on Thursday, he mentioned a phone call that he made to the CEO of United Technologies, the air conditioning company’s parent.
“Companies are not going to leave the United States anymore without consequences”. Those who do, he said, will be “taxed very heavily at the border”. Carrier company officials said in a statement Thursday that the state of in, where Vice President-elect Pence is governor, offered the company a $7 million package over multiple years, contingent on factors including employment, job retention and capital investment.
Carrier parent United Technologies is a major defense contractor, with $5.6 billion in revenue from federal government contracts, or 10% of its total revenue. Details remain hazy, including whether some Carrier employees will still lose jobs and the nature of the tax breaks the company is getting to stay in Indiana. The company described the incentives as “an important consideration”, along with the new administration’s support for “an improved, more competitive business climate” that Trump has said will include a reduction in the corporate tax rate to 15 percent from its current top rate of 35 percent.
He pledged to create a healthy environment for business through lower taxes and fewer regulations.
The three-term Republican lawmaker and hard-liner on immigration said Friday in an interview he’ll talk to his family about the job over the weekend. Joe Donnelly has been working on a plan to help save the jobs at Carrier. If you remember during the primary, this was going to be the firewall.
Also, Trump’s A-team was once again exploding from within. Jones, the union local president, says some 800 production and supervisor jobs will be saved, while the remainder are headquarters and engineering staff that were not going to be outsourced.
During the presidential campaign Mr Trump highlighted potential Carrier layoffs as a symbol of people’s frustrations and guaranteed to rebuild the manufacturing industry.
“Because we can’t ask Americans to send their hard-earned tax dollars to the very same companies that fire them and ship their jobs overseas”, Donnelly said.