US president-elect Donald Trump on Thursday warned hat US companies would face “consequences” for outsourcing jobs abroad, as he touted his early success in persuading an air-conditioner maker to keep about 1,000 jobs in the US rather than move them to Mexico.
“Companies are not going to leave the United States anymore without consequences. Not going to happen,” the US Republican said on a visit to a Carrier Corp plant in Indianapolis, Indiana.
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 US manufacturers that moved jobs offshore.
Photo: AFP
It is unclear what steps would have to be taken by US authorities before Trump could retaliate against individual companies shifting jobs abroad.
Trump also did not address whether Carrier’s parent company, United Technologies Corp, would face any consequences for continuing with plans to move 1,300 other Indiana jobs to Mexico.
Trump made keeping jobs in the US one of the main issues of his campaign and frequently pilloried 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 manufacturer 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.
If that approach did not work, there would be penalties, Trump warned.
Trump toured the plant in Indianapolis and shook hands with workers on an assembly line. Some workers yelled: “Thank you Mr Trump” and “Thanks Donald” as he greeted them.
Carrier confirmed that Indiana agreed to give the company US$7 million in tax incentives.
A source briefed on the matter said the tax incentives were over 10 years and the company had agreed to invest US$16 million in the state, where Trump’s vice president-elect, Mike Pence, is governor.
Carrier still plans to move 600 jobs from the plant to Mexico, the Wall Street Journal said.
Reuters reported earlier this week that Carrier also still intended to close a factory in Huntington, Indiana, that employs 700 people making controls for heating, cooling and refrigeration and move the jobs to Mexico by 2018.
Despite Trump’s deal, employers elsewhere in Indiana are laying off five times that many workers because of foreign competition.
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