Trump's retaliation threats may not stop offshoring of US jobs

New York

PRESIDENT-ELECT Donald Trump's threats to retaliate against US companies planning to shift operations overseas constitute a new risk for multinationals, but may not sway those already planning to offshore jobs.

Mr Trump laid down the gauntlet last Thursday at a campaign-style rally after striking a deal with Carrier to keep about 1,100 jobs in Indiana in exchange for US$7 million in state tax incentives over 10 years.

"Companies are not going to leave the United States anymore without consequences. Not going to happen," Mr Trump told the cheering crowd. "They can leave from state to state, and negotiate deals with different states, but leaving the country will be very, very difficult."

The president-elect did not offer details on how he planned to pressure companies to keep jobs in the US, but one obvious lever includes the removal of government contracts. That could make companies that work in defence, public works and public services especially vulnerable to retribution.…