The major heating and cooling company known as “Carrier,” which is based in Indianapolis, was prepared to transfer over one thousand of its jobs to Mexico. That was until President-elect Donald Trump spoke with CEO Gregory Hayes of United Technologies, which is the parent company of Carrier, and told him that he needed to come up with a way to keep a good portion of his jobs in the United States rather than move them to Mexico. If he didn’t do that, then Trump said his administration would make economic interests worse for the company.
After this discussion between Trump and Hayes, a decision was made by Carrier to keep those roughly one thousand jobs in Indiana and not move them to Mexico. On Thursday, Trump visited the Carrier factory and even made a speech about how the Carrier deal should serve as an example to other businesses in the United States as to the benefit of keeping jobs in the country. If companies continue to move their production operations to other countries, Trump has pledged to enforce high tariffs on all their imports which come into the United States.
This means if a company outsources their labor to a cheaper wage country like China, then all the products manufactured and sent back to the United States will be taxed a lot more than normal. But if these companies keep their production in the United States, they will receive generous tax breaks. Not only that, but they’ll be employing American workers and boosting the American economy.
The Carrier deal has gotten mixed reviews and criticisms. Senator Bernie Sanders thinks it is a bad idea because it threatens every American corporation that does business overseas and persuades them to stay in the U.S. in exchange for corporate giveaways. These are the same corporate giveaways that Trump had criticized during his presidential campaign.