Trump threatens payback for U.S. companies that move abroad

The problem is what we’re giving Carrier to remain in the state. It was reminiscent of 2010, when Emerson Corp. – a Carrier supplier and owner of CR Compressors – moved its operations and 500 jobs from Hartselle to Mexico.

Even Trump supporters like former Republican vice presidential nominee Sarah Palin bashed the Carrier deal as “crony capitalism”.

“Your son, whoever the hell your son is, these people owe him a lot”, Trump said.

Vice President-elect Mike Pence, who remains governor of IN until next month, defended Trump’s effort on Carrier on NBC’s “Meet the Press”.

During the campaign, he had often cited the IN plant’s moving plans as a major result of poor Obama administration policies, and pledged to revive USA manufacturing. Trump pointed to one and yelled at reporters “He’s going to have a good Christmas”.

So after being unsure of the outcome of these negotiations, Carrier actually agreed to keep some jobs. According to the Wall Street Journal, Pence said Thursday that he hadn’t been sure if Carrier would reconsider the move to Mexico.

“This is not a precedent we want to see – American presidents aren’t supposed to interfere on behalf of individual companies”, David Boaz, executive vice president of the Cato Institute, a libertarian think tank in Washington, told The Fiscal Times last week. During his campaign, the president-elect promised to keep jobs in the US, specifically mentioning Carrier.

While details of the deal are coming out slowly, Carrier has acknowledged that its change in heart was at least in part the result of Pence’s promise of $7 million in tax breaks. As economist Paul Krugman noted, Trump would have to do a deal like this once a week for 30 years to save as many jobs as Obama’s auto bailout.

“Please be forewarned prior to making a very expensive mistake!” he added.

“Probably none of them amount to anything in terms of safety or the things you’d have regulations for”, he said. They would then have to pay higher import tariffs of 35 percent to get their goods back in the United States. This suggests that hundreds will still lose their jobs at the factory, where roughly 1,400 workers were slated to be laid off.

We now know which employees are most likely to have their jobs outsourced to Mexico.

President-elect Donald Trump visits the Carrier plant on Indianapolis’s west side. There will be consequences. Instead, it offered instead a mix of tax breaks and other “financial incentives” for Carrier’s parent company, United Technologies, amounting to $7 million over 10 years.