Donald Trump warns of “consequences” for companies leaving US
US President-elect Donald Trump on Thursday warned that American companies will face consequences if they relocate outside the country.
“Companies are not going to leave the United States anymore without consequences. Not going to happen,” Trump told workers at the Carrier plant in Indianapolis in his first major public remarks since winning the White House. “These companies aren’t going to be leaving anymore, they aren’t going to be taking people’s hearts out,” he added.
He said that firms moving abroad would be “taxed very heavily” at the US border. Trump said, “
“They can leave from state to state, and negotiate deals with different states, but leaving the country will be very, very difficult.”
During the presidential campaign, Trump repeatedly threatened to slap tariffs on firms choosing to move to countries where labour costs are cheaper.
Trump has announced a deal with Carrier – the largest air-conditioning manufacturer in the US to prevent jobs being moved to Mexico. The company has confirmed a deal to keep 1,100 jobs there – although hundreds of workers still face unemployment.
The deal will give Carrier a $7m tax-break package over 10 years – negotiated by Governor and Vice President-elect Mike Pence.
Vermont Senator Bernie Sanders has criticised Trump’s deal with the company in a piece published in the Washington Post on Thursday. “Let’s be clear, It is not good enough to save some of these jobs. Trump made a promise that he would save all of these jobs, and we cannot rest until an ironclad contract is signed to ensure that all of these workers are able to continue working in Indiana without having their pay or benefits slashed.” Sanders wrote.
Trump’s supporters have described the deal as the first tangible part of his plan to increase employment. Trump also under pressure to prevent other job cuts across the state, with several other factories in Indiana set to close.