Date
10 December 2016
Donald Trump holds an event at the Carrier Corp. plant in Indiana after persuading the company to keep 1,000 jobs in the US instead of shipping them to Mexico. Photo: Reuters
Donald Trump holds an event at the Carrier Corp. plant in Indiana after persuading the company to keep 1,000 jobs in the US instead of shipping them to Mexico. Photo: Reuters

Trump warns of consequences for US firms sending jobs abroad

President-elect Donald Trump is warning that US companies would face “consequences” for outsourcing jobs overseas.

The warning comes as Trump touted his early success in persuading air-conditioner maker Carrier to keep about 1,000 jobs in the US rather than move them to Mexico, Reuters reports.

“Companies are not going to leave the United States anymore without consequences. Not going to happen,” the Republican said on a visit to a Carrier Corp. plant in Indianapolis.

Trump, who takes office on Jan. 20, did not say what the consequences would be but he frequently threatened during the election campaign that his administration would put a 35 percent import tariff on goods made by American manufacturers that moved jobs offshore.

It is unclear what steps would have to be taken by federal authorities before Trump could retaliate against individual companies shifting jobs abroad.

Trump also did not address whether Carrier’s parent company, United Technologies, would face any consequences for continuing with plans to move 1,300 other Indiana jobs to Mexico.

Trump made keeping jobs in the United States one of the main issues of his campaign and frequently criticized Carrier for planning to move production to Mexico as he appealed to blue-collar voters in the Midwest.

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 US jobs to Mexico.

Trump said his negotiations with the maker of air-conditioning units were a model for how he would approach other US businesses that are tempted to move jobs overseas to save money.

He pledged to create a healthy environment for business through lower taxes and fewer regulations.

“I just want to let all of the other companies know that we’re going to do great things for business. There’s no reason for them to leave anymore,” Trump said.

– Contact us at [email protected]

RC/RA

EJI Weekly Newsletter