In Tweetstorm, Trump Threatens "Retribution" For Companies That Leave The US
President-elect Donald Trump fired off Sunday morning with a Tweetstorm (after again complaining about the "totally biased, not funny " Saturday Night Live), and in a series of six tweets threatened heavy taxes as "retribution" for U.S. companies that move their business operations overseas, fire US workers and still try to sell their product to Americans. Trump vowed he would slap a 35% tax on products sold inside the U.S. by any business that fired American workers and built a new factory or plant in another country.
The president-elect tweeted that his administration will "substantially reduce taxes and regulations on businesses. But any business that leaves our country for another country," he added, "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!"
Trump said there will be a 35 percent tax on the country's "soon to be strong border" for companies that leave and then want to sell their products back to U.S. consumers. "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," the president-elect tweeted.
"Please be forewarned prior to making a very expensive mistake! THE UNITED STATES IS OPEN FOR BUSINESS."
Trump last week reached a deal with Carrier to keep about 1,000 factory jobs in Indiana that were slated to move to Mexico. On Friday night, we hinted that Rexnord, which is planning to move 300 jobs from Indiana to Mexico, is in his sights next.
The tweetstorm also suggests that far from moderating his stance on protectionism, Trump is only getting started; however it also means that companies will simply have to get more creative with finding tax loopholes that do not lead to escalating "retribution" although if Trump is indeed serious on punishing anyone who fires US workers in a quest for lower wages, may have their work cut out for them.