Despite President Donald Trump’s promise to stop companies from outsourcing production to Mexico by imposing a significant border tax on goods sold in America, some businesses ignore this threat.
Following his election in November, the Trump administration assembled a group of 28 business and labor leaders to advise on “on how best to promote job growth and get Americans back to work again,” as well as launching a Manufacturing Jobs Initiative.
The Wall Street Journal published a report on Wednesday on some of the companies planning to outsource production. Here is what they found:
- Rexnord Corp – The Milwaukee-based firm, which specializes in industrial products, looks to move its factory from Indianapolis to Mexico, despite Donald Trump singling out the company for their plans. Three-hundred American workers will lose their jobs.
Rexnord of Indiana is moving to Mexico and rather viciously firing all of its 300 workers. This is happening all over our country. No more!
— Donald J. Trump (@realDonaldTrump) December 3, 2016
- General Motors – Despite their commitment to invest $1 billion in US plants, General Motors (GM) plan to move their Detroit operations to Mexico. Michigan was one of the traditionally blue states won by Donald Trump on the promise he would keep high-paying jobs in the area.
- Ford – Like General Motors, car manufacturers Ford have promised Donald Trump that they will create thousands of new American jobs as part of their expansion plan. However, also like General Motors, they intend to move their Detroit factory to Mexico.
- Nucor – The North Carolinian steel producers, who employ over 20,000 people, intend to proceed with outsourcing production to Mexico, although their CEO John Ferriola has admitted they “are watching the situation in Washington very, very closely.”
- Caterpillar – The Illinois-based industrial manufacturers also plan to outsource production to a factory in Monterrey, Mexico. However, company CFO Brad Halverson has said they will “have to see how this plays.”
- Manitowoc Food Service – A leading supplier of foodservice and cooking equipment, MFS ignored Trump’s post-election threats and has laid off 80 employees at its plant in Sellersburg, Indiana, and has already started production in China and Taiwan.
Despite these apparent failures to persuade companies to remain in America, Trump has had some significant successes in ensuring the continuation, or even creation, of jobs in America.