Posted on 12/04/2016 11:27:46 AM PST by E. Pluribus Unum
Trump warned companies of “retribution or consequences” for leaving the U.S. Donald Trump warned U.S. companies of “retribution or consequences,” such as a massive tariff, if they leave the country.
In a series of early morning tweets Sunday, Trump said companies with offshore factories would face a 35% tax on products they want to sell back in the U.S.
“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 products back into the U.S. without retribution or consequences, is WRONG!” the president-elect wrote. “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.”
The proclamations came after Trump’s intervention with Carrier, who decided to keep about 1,000 jobs in Indiana instead of moving them to Mexico. Carrier will receive economic incentives worth $7 million, in a deal negotiated by Vice President-elect Mike Pence, the current governor of Indiana. Despite the Carrier deal, the company still plans to close a plant in Huntington, Indiana, moving about 700 jobs to Mexico.
(Excerpt) Read more at fortune.com ...
I don’t see any problem with this what so ever. Before the Neo-Cons start squawking about Reagan, it is important to remember that Reagan was no free trader. He was a protectionist and used voluntary import quotas and tariffs to cajole foreign car makers to move their production to the U.S. the entire Southern auto industry along with Ohio Honda are a direct result of Reagan protectionism.
Trump is dealing with a group of “college graduates” now running much of our nation’s remaining manufacturing who were “educated” at our Marxist colleges and universities that it’s “the dollar uber alles!” What has always amazed me is that at the end of the day, the fired workers are the customers for their products. It seems that they think it’s a “good deal” to fire American workers then sell them “lower-priced products” made outside the country. Carried to the extreme, the have cheaper products but no one who has a job to afford to buy them at any price. It’s time the globalists get a real haircut.
And the other piece of this is that foreign competitor’s products should be tariffed so they are not “less expensive” than their American-made competition’s.
That’s literally true. Japanese dumping was hurting us badly at the time, at least that’s what we were being told. There is a possibility that Japanese people didn’t WANT the pieces of sh!t being produced by the American Big 3 at the time. Wonder why I never thought about that before.
What an interesting approach. To my knowledge the trade agreements, like GATT and NAFTA prevent the president from imposing tariffs on products coming into the country from our trading partners. The idea of imposing tariffs on products produced by American companies overseas is most likely not in the wording of those agreements and would not invoke the penalty clauses. (If this is the case, Trump has out nuanced all the liberal pundits. They can eat verbiage.)
Ohhhh, that’s comin’. I posted above that the Japanese were hurting us when Reagan was President, now it’s the Chinese and Mexicans with their hands in our pockets.
“In a series of early morning tweets Sunday, Trump said companies with offshore factories would face a 35% tax on products they want to sell back in the U.S.”
Hey Fortune, Trump’s been saying that for a year and a half.
Where you been degenerates?
Make it an even 40%!
Good. This is one of things that gave us Trump.
Why wouldn’t the company simply decide to reincorporate as a Mexican company, since only American companies are subject to this tax
yea where have they been? in the infamous Michael Moore video he commented on DJT saying this in Detroit to the auto makers club? I think that’s where it was he first mentioned the tariffs. I think the President Elect agrees with this, you know this is Bannon’s ideology. He’s an admitted economic nationalist, and has been for years, and has never wavered.
Protective tariffs are self-inflicted gun shots inflicting the AMERICAN consumer with higher prices and thus a lower standard of living for AMERICANS. Special interests can take a flying leap.
Go after the ROOT CAUSES of business fleeing the country which is the FEDERAL GOVERNMENT.
- Abolish the unconstitutional federal minimum wage
- Abolish unconstitutional federal regulations
- Abolish unconstitutional federal union protection
- Abolish federal corporate taxes which is a hidden form of higher individual taxes
Don't layer more government interference on top of the problems the feds have already caused.
The Leftist and confused do-gooders' answer for government failure is always more government. Utterly stupid.
And it's not "crony capitalism" either - another Leftist term meant to confuse the issue. The issue is the GOVERNMENT, NOT "capitalism". The corrupt, unconstitutional, and bone-headed acts of federal government be and must be rejected and abolished. THAT will make America a business-friendly country and THAT is what will make America great again.
Government never has, doesn't now, and never will make America great. Freedom has, is, and always will be the source of America's greatness.
Quit NAFTA and Mexico no longer is a shield.
Renouncing citizenship has catastrophic financial consequences.
Renouncing corporate citizenship may well have similar consequences.
Except the products made by third world labor shipped back into the US are not really all that lower in cost. I’m pretty sure the corporations pocket most of that large profit margin from their lower production costs.
This really hasn’t worked out the way we we’re told has it?
I think he’s holding back a bit....like...if I can get Congress to lower the Corporate taxes and your states siving you incentives (and all states do this), and you STILL insist on going out of the country...we’re gonna put the scr*** to you when you try to sell your stuff here.
Then you hit them by looking at Transfer Pricing. If it is an independent company, it does not help the US stock price.
I think Mr. Trump will use both the carrot and the stick to encourage business development in the United States.
Probably because the Mexican government would own you...hook, line and sinker. Look at Venezuela...
(1) Cut taxes, esp. corporate ones, and (2) impose tariffs on companies that leave.
LIKE THIS PLAN!
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