WASHINGTON (Diya TV) – President-elect Donald Trump said Wednesday he will impose “a major border tax” on companies that move production facilities overseas and sell goods back to the U.S. These taxes will likely affect bigger companies the most but are also designed to make US-based businesses weigh up the pros and cons to manufacturing overseas VS domestically. You can read more about this here.
The comments came just days after automaker Fiat Chrysler said heavy tariffs could force the company to close its plants in Mexico. Since his election on Nov. 8, President-elect Trump has taken to Twitter to call out executives and companies with plans to shift jobs overseas.
“You want to move your plant, and you think, as an example, you’re going to build that plant in Mexico, and you’re going to make your air conditioners or your cars, or whatever you’re making, and you’re going to sell them through what will be a very, very strong border … Not going to happen. You’re going to pay a very large border tax,” he warned.
Automakers in particular have felt the brunt of Trump’s power thus far, he demanded the industry return its manufacturing hubs stateside. The hubs are currently situated in Mexico, and account for a fifth of all vehicle production in North America. Those thinking about moving their plant overseas may now want to rethink this move to see if it’s actually worth it. Moving a plant overseas isn’t easy but thankfully, there are sites like jonble.com which are very helpful when it comes to overseas manufacturing. From factory audits to product inspections, businesses need to know their processes are still going to remain the same in order for the company to still produce its products.
On Monday, Fiat Chrysler Chief Executive Sergio Marchionne said, “It’s possible, if the economic terms imposed by the U.S. administration on anything that comes into the United States that, if they’re sufficiently large, that it would make the production of anything in Mexico uneconomical.”
In its annual State of the American Business Address on Wednesday morning, the U.S. Chamber of Commerce, which traditionally has worked in concert with the Republican Party, urged Trump not to add to the “burdens” of exporters by erecting barriers to trade that could hamper economic growth.