President-elect Donald Trump has proposed a 35 percent tariff on goods that have been imported to the United States by American Companies that manufacture their products overseas; Mr. Trump tweeted six times in what seemed to be an attack to companies that are transferring their operations overseas, this tweets were live shortly before 7 a.m.
In his tweets, Trump said that the U.S. was going to reduce regulations and taxes on businesses. However, he insisted that any company that is outsourcing overseas ends up firing its employees, constructs a new factory overseas, and then thinks that it's going to sell the products in the U.S. market without consequence or vengeance was wrong. Trump added that the companies will be subjected to a 35 % tariff.
The is no clarification as to what has triggered this threat from Trump’s tweets as he outlines the economic policy. However, this comes in less than a week after Mr. Trump announced that he had successfully convinced Carrier to suspend it’s plans to move it’s operations to Mexico thus saving 1,100 jobs in Indiana, Carrier is a heating and cooling systems manufacturing company.
Trump’s efforts have not been taken lightly as some skeptics have attacked him despite the wonderful job he’s done. Such include the Democratic presidential candidate Sen. Bernie Sanders who attacked Trump saying that he was rewarding Carrier. Sanders claims were based on the fact that the Carrier deal had no tax penalty. However, Mr. Trump did not include any tax penalty in his undertaking with Carrier, instead he offered several financial incentives and tax breaks to Carrier's parent company known as United Technologies. The financial incentives amount to $7 million over a duration of 19 years.
Sarah Palin also termed the deal saying it was an ideal illustration of crony capitalism. Vice President-elect came in handy to deny the allegations. It’s crucial for government to intervene in business since this oversight ensures that citizens or potential employees are taken care of and that their interest is kept at heart by the big corporations.
There has been several claims that when big tariffs are imposed on U.S. Companies, there is a likelihood of increase in production cost, consumer cost and the end result might be a trade war. However, the fact remains, if companies continue outsourcing from overseas, the U.S. citizens will be greatly affected by unemployment rates which is already a big problem now. It’s therefore a matter of weighing the consequences of imposing the tariffs versus letting companies outsource thus causing unemployment.