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12.01.2017 02:49 Age: 2 days

Trump Reemphasizes His Tariff Threat


On January 11, during his first press conference since the election, President-elect Donald Trump reemphasized his plan for import tariffs on US multinational companies that move their production abroad at the cost of US jobs and then sell products back into the United States.

The President-elect has frequently said that he will impose a 35 percent tariff on their imports, and, in that respect, has particularly attacked US trading arrangements with Mexico under the North American Free Trade Agreement.

A number of automotive companies have already responded to the threat of a US border tax. Earlier this month, Ford announced the cancellation of a proposed Mexican investment in favor of a USD700m expansion of its plant in Flat Rock, Michigan; Toyota stressed that it has no plans to decrease investment or employment in the US, despite plans to build a new plant in Mexico; and Fiat Chrysler suggested it may be forced to reconsider its commitment to production in that country.

According to transcripts of the interview, Trump said that "the word is now out that, when you want to move your plant to Mexico or some other place, and you want to fire all of your [US] workers, it's not going to happen that way anymore. . You're going to pay a very large border tax."

He pointed out that, as far as he is concerned, such companies could move their production facilities anywhere between US states, but not outside the country - "I don't care, as long as it's within the borders of the United States. . There will be a major border tax on these companies that are leaving and getting away with murder."


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Trump Reemphasizes His Tariff Threat