Donald Trump is ready to shake things up when he returns to the White House.
His agenda is already starting to pay dividends.
And an automotive executive revealed one secret about Donald Trump that sent shockwaves.
Former Chrysler executive says companies are moving out of China
President-elect Donald Trump ran on bringing home American manufacturing jobs from China and overseas.
He threatened to slap tariffs on the products of companies that import products into the country.
The pending return of Trump to the White House is already causing companies to pull out of China.
Former Chrysler CEO Bob Nardelli said that Trump’s victory caused businesses to rethink their plans during an appearance on Fox Business.
“I think he’s [Trump] going to be very positive about growth,” Nardelli explained. “He’s going to be very protective. He’s going to try to re-shore onshore stuff out of China.”
He revealed that business executives he spoke with are already making plans to shift their China strategy.
“Big discussion yesterday about the supply issue, basically superseding the domestic demand issue in China, so a lot of the companies I’m talking to and CEOs are already looking at how they’re going to move out of China, either onshore, back to the U.S., or re-shore to another favorable country,” Nardelli said.
Shoe company Steve Madden announced that it was reducing its manufacturing in China by 45% right after the election.
“Just under half of our current business would be potentially subject to tariffs on Chinese imports (if Trump decides to impose tariffs when he takes office in January),” a Steve Madden executive told Reuters.
Nardelli met with global business leaders at the Fortune Global Forum in New York City.
“The conversation there is very optimistic,” Nardelli stated. “There are still some naysayers, but if you look at the quick start of this new administration and President Trump, I think [it] bodes very well for business.”
Trump’s tariffs strategy
The expectation among many is that Trump’s threat of tariffs are a negotiating tool to secure better trade deals.
But the threat of China having tariffs slapped on its products is very real.
Voya Investment Management head investor Eric Stein predicted that there would be some wheeling and dealing from the Trump administration with tariffs.
“Tariffs are important to watch and I do expect Trump and [potential ‘Trade Czar’ Robert] Lighthizer will push tariffs, but I expect at least most of them won’t last that long as they are mostly negotiating tools,” Stein told FOX Business. “There will likely be some volatility around the tariffs but I expect them to be mostly used as a negotiating tactic.”
Congress could see a bill early in the Trump administration that uses tariff revenues to fund tax cuts.
“We’re likely to see in a reconciliation bill . . . that’s raising revenue through tariffs on imports and taking that savings and using it to cut taxes and create incentives for domestic production,” a source with knowledge of Trump’s talks with Congress told Politico.
Donald Trump is ready to take a hard line against China and rebuild American manufacturing.
