President-elect Donald Trump took to Twitter yesterday warning of retribution for other companies contemplating moving production abroad, the New York Times reported today. His tactics have drawn criticism from both the left and the right, with a range of experts saying that his approach may be ineffective at best, and crony-capitalist and caudillo-like at worst. “Blackmail is implicit in this approach, and it’s dangerous,” said Tyler Cowen, a conservative free market-oriented economist who teaches at George Mason University. “It’s a lot of political theater, but that’s not even my biggest criticism. Trump is negotiating with individual businesses outside of the rule of law and bureaucratic procedure.” On Friday, Trump took aim at Rexnord, another manufacturer with a plant in Indianapolis, which disclosed plans in October to move to Mexico. “No more!” he said on Twitter, helping to push Rexnord’s stock down 8 percent for the week. According to Trump, the penalty would be a 35 percent tariff imposed on goods that companies ship back into the United States after they move production abroad. It is doubtful that Trump would have the legal authority to punish individual companies without congressional action. But he is also promising a broader overhaul of corporate taxes and the elimination of a host of regulations that he sees as stifling American companies, in addition to individual incentive packages like the $7 million one that Carrier received.
