Trump criticizes another company for planned move to Mexico
By Charleston Lim
President-elect Donald Trump recently posted a series of rants on Twitter which further strengthened his stance on putting Americans first by persuading companies to keep their factories within the country. Trump posted a set of tweets that criticized yet another U.S. company who is apparently planning to move their production from Indianapolis to Mexico in the coming months. The move in itself will reportedly translate to over 300 Americans losing their jobs once the U.S. factory is closed.
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
Rexnord Corp., formerly First Carrier Corp, plans to transfer a huge portion of their manufacturing within the middle of next year. The company has reportedly been experiencing slow sales, and the move will save them a great deal of money in labor costs. Rexnord plans to counter their falling revenue by cutting over $30 million in cost, which will include closing a quarter of their factory space globally before the end of march next year. The Milwaukee-based manufacturing company produces ball bearings, plumbing valves, gears, and other industrial products. The company currently employs over 7,700 workers, with over 4,200 in the United States.
Trump's recent tweets concerning the company's move to Monterrey, Mexico, was blunt and somewhat threatening. The president-elect mentioned how the move would translate to 300 workers losing their jobs and that this was something that he will no longer tolerate. Trump even threatens the companies that will follow in Rexnord's footsteps with severe consequences, including a possible 35% import tariff. He then goes on to warn the other companies that moving out of the United States might become a "very expensive mistake!"
Aside from the threats, Trump also advices business owners to explore other options before deciding to migrate their factories outside the country. These options include relocating between states and negotiating for larger tax breaks. However, Chuck Jones, the president of a United Steelworkers, expressed his dismay on the entire situation and mentioned that increased tax breaks might not be enough to compete with the $3-an-hour wages in Mexico.