Donald Trump (Photo: Joe Raedle, Getty Images)
Days after praising a deal providing tax breaks to a company for keeping jobs in the United States, President-elect Donald Trump is renewing his threat to slap tariffs on the products of companies that move jobs overseas in the future.
“There will be a tax … soon” of 35% for companies that move overseas and try to sell goods “back across the border,” Trump said during a Sunday tweet storm.
Pledging to cut taxes and reduce regulations on all businesses, Trump said that “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 tweets came days after Trump and aides celebrated a deal with the Carrier heat and air conditioning company, which abandoned plans to move some jobs to Mexico after the state of Indiana provided $7 million in tax incentives.
Even Trump supporters like former Republican vice presidential nominee Sarah Palin bashed the Carrier deal as “crony capitalism.”
Now, critics are taking aim at Trump’s revival of a threat he made during the presidential campaign, saying his claim to tax products made by U.S. companies overseas will lead to higher prices for American consumers.
“Pres-Elect Trump means well,” tweeted Sen. Ben Sasse, R-Neb. “But won’t his 35% tariff idea raise prices on American families? How would it not be a new 35% tax on families?”
In his Sunday tweets, Trump said his 35% tax “will make leaving (the U.S.) financially difficult.”
Trump appeared to be provoked by news that Rexnord, the Indiana-based bearing manufacturer, is planning to move jobs to Mexico.
“Rexnord of Indiana is moving to Mexico and rather viciously firing all of its 300 workers,” Trump tweeted Saturday. “This is happening all over our country. No more!”
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