The President-elect of United States Donald Trump yesterday (4 December) claimed that he had ‘persuaded’ United Corporation, the parent company of Carrier Corporation, from outsourcing more than 1,000 jobs to Mexico.
United Corporation had announced its intention to shut down two manufacturing plants in Indiana (one in Indianapolis, another in Huntington) as far back as February 2016. Trump turned the company into a political punch-bag during his campaign, claiming that he would stop the outsourcing and loss of jobs if he is elected president. As part of his efforts to win the votes of working classes, he had even threatened to impose punitive tariffs on companies that move manufacturing outside the US but continue to sell their products in the country.
Trump claimed that he continued to be ‘involved’ in talks with United Corporation even after his election victory. Late last week United Corporation announced that it will not go ahead with the planned closure of the above mentioned manufacturing plant and that a few hundred jobs that were to be shifted to Mexico will now remain in Indiana. The state government of Indiana had in return promised tax breaks to the tune of millions of dollars for the company.
Quick to take credit, Trump tweeted yesterday (4 December) saying that the business which believes in moving jobs out of the US and then hoping to sell its products back in the country without any trouble or retribution ‘is wrong’. He has threatened a 35 per cent tariff on such companies. He has also said that the US is going to 'reduce taxes and regulations for businesses'.
The U.S. is going to substantialy reduce taxes and regulations on businesses, but any business that leaves our country for another country,— Donald J. Trump (@realDonaldTrump) December 4, 2016
fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. ......— Donald J. Trump (@realDonaldTrump) December 4, 2016
without retribution or consequence, is WRONG! There will be a tax on our soon to be strong border of 35% for these companies ......— Donald J. Trump (@realDonaldTrump) December 4, 2016
However, despite the recent ‘deal’, United Corporation is reported to be going ahead with the closure of its factory in Huntington, Indiana and shift those jobs to Mexico. Some 1,300 jobs will be lost in the US as a result of this move.