The President Elect’s success in keeping 1,000 Carrier jobs in Indiana is great PR. While it depends in part on 7 million dollars in state tax rebates, the silver lining is that this might cause people to wonder why all businesses don’t get such a tax break. At the Federal level Mr. Trump is promising exactly that, as well as reducing the Federal regulatory burden.
Unfortunately, he’s simultaneously proposing another regulation, reviving his threats of a 35% tariff on goods produced by American based companies if they move manufacturing overseas. Apparently, this won’t apply to Trump apparel since it’s always been made in China, Vietnam, Bangladesh, Mexico or other countries where labor is cheaper.
Like George W. Bush’s steel tariffs, this is a bad idea that would damage American consumers (including businesses) to favor a small group of workers.
Some (Chao, De Vos and Mnuchin aren’t exactly swamp drainers) of his choices for Cabinet positions have been good, so it’s too bad he’s keeping his campaign promises on trade. Mr. Trump’s businesses have depended on government subsidies and regulatory exemptions and he’s showing every sign that he thinks that’s good “industrial policy.”