Trump threats may not stop US offshoring of jobs

Trump laid down the gauntlet on Thursday at a campaign-style rally after striking a deal with Carrier to keep about 1,100 jobs in Indiana in exchange for $7 million in state tax incentives over 10 years.

Trump threats may not stop US offshoring of jobs

World Bulletin / News Desk

President-elect Donald Trump's threats to retaliate against US companies planning to shift operations overseas constitute a new risk for multinationals, but may not sway those already planning to offshore jobs.

"Companies are not going to leave the United States any more without consequences. Not going to happen," Trump told the cheering crowd.

"They can leave from state to state, and negotiate deals with different states, but leaving the country will be very, very difficult."

The president-elect did not offer details on how he planned to pressure companies to keep jobs in the United States, but one obvious lever includes the removal of government contracts.

That could make companies that work in defense, public works and public services especially vulnerable to retribution.

"Boeing, for example, would have to play ball if it wants its government contracts renewed," said one expert who requested anonymity.

Trump coupled the threat with a promise to make the US a better place for business by cutting taxes and streamlining regulations.

"There are a lot of plans already in place," said Hal Sirkin, a manufacturing expert at the Boston Consulting Group.

"CEOs are following the news closely and trying to figure out what all of this could mean for their businesses."

Last Mod: 04 Aralık 2016, 13:12
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