Trump's Tariff Threats Already Having "Big League" Effect As Companies Halt Outsourcing Plans

Throughout the campaigning cycle, Trump sent a very clear message to businesses looking to move manufacturing operations offshore by repeatedly saying that subsequent imports would be hit with a massive 35% tariff.  Here is a December 4th tweet storm from the President-elect on the topic:


Therefore, it's not terribly surprising that, according to Bloomberg, Trump's messaging has already resulted in several companies postponing their plans to move overseas.

Ross Baldwin, whose San Diego-based firm Tacna helps U.S. companies set up manufacturing operations in Mexico, said three new clients put their plans on hold until they see what Trump does as president.


At the McAllen Economic Development Corp., which assists companies seeking to expand across the Mexican border from the Texas city, two of five companies currently considering a move have put the brakes on their plans because of Trump, said Keith Partridge, the development corporation’s chief executive officer.



Meanwhile, in what Palin referred to a "crony capitalism," Boards across the U.S. are likely taking a "wait and see" approach on what kind of cost savings a Trump presidency can deliver in terms of lower corporate taxes and reduced regulations. 

“What they did in Indiana has made it clear to every board member in America that there is a clear and present danger in outsourcing” said Jim Courtovich, managing partner of the Washington public affairs firm Sphere Consulting, who said he has already heard from worried business executives.


GN Store Nord A/S looked into moving some hearing-aid production work from Minnesota to Mexico earlier this year but put the plan on hold because of U.S. campaign rhetoric, a person familiar with the matter said. GN wants to explore incentives to keep production in Minnesota and whether there would be penalties for relocating jobs to other countries, said another person. Both people asked not to be named because the discussions are private.

That said, other companies are pressing forward with outsourcing plans and hoping for the best.

Some companies are still moving ahead in shifting jobs. Rexnord Corp. is planning to move some 300 manufacturing positions to Mexico from a ball bearings plant just a mile away from the Carrier plant Trump visited. He attacked Rexnord on Twitter for “rather viciously firing” the U.S. workers. Rexnord didn’t respond to requests for comment about the tweet and its plans for the Indiana plant.


Baxter International Inc., a maker of health-care products, is moving some production from an Englewood, Colorado, plant to Tijuana, Mexico, according to a certified trade adjustment assistance petition filed by the state government. Some of the work is being done remotely by employees who have remained and “much of the work is being transitioned to third-party business partners in the U.S.,” Baxter said in an e-mailed statement.


Cardone Industries, a closely held auto-parts maker based in Philadelphia, is moving work to Mexico, affecting 1,300 jobs, according to a trade adjustment assistance petition filed by the company. Cardone’s human resources director didn’t respond to requests for comment.

You may agree or disagree with his policies but at least Trump is following through on this campaign promise, which is more than we can say for most politicians.