President-elect Donald Trump has warned US companies moving to Mexico will face “retribution” under his administration. In Indianapolis, Trump reiterated a campaign pledge to slap goods imported from Mexico with a 35 percent tariff.
“The U.S. is going to substantialy (sic) reduce taxes and regulations on businesses, but any business that leaves our country for another country 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. without retribution or consequence, is WRONG!,” the President Elect tweeted in the 6 o’clock hour.
Trump celebrated a deal in Indiana to reverse plans to move Carrier’s Indianapolis operation to Mexico. Carrier’s parent company, United Technologies, is a major federal contractor.
In the future, Trump wants to impose new taxes on companies to make it less advantageous to move business to Mexico or other countries with lower wages.
“There will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, A.C. units etc., back across the border,” Trump continued. “This tax will make leaving financially difficult, but these companies are able to move between all 50 states, with no tax or tariff being charged. Please be forewarned prior to making a very expensive mistake! THE UNITED STATES IS OPEN FOR BUSINESS.”
Such a tariff would require congressional approval, but House Speaker Paul Ryan previously fretted Trump’s idea would start a “trade war” with other countries imposing retaliatory higher taxes on US imports. Ryan wants comprehensive tax reforms that would lower taxes and streamline rules in effort to make the US more business friendly.