World

American Jobs Going To Mexico Under Trump

| by Michael Allen

President Donald Trump repeatedly promised to stop the flow of American jobs going to Mexico during the 2016 election, but a new report says more U.S. jobs are headed across the border on his watch.

Bloomberg Politics noted that Illinois Tool Works Inc. is going to shutter its auto-parts plant in Mazon, Illinois, and move those operations to Ciudad Juarez, Mexico. TE Connectivity Ltd. is closing its pressure-sensor plant in Pennsauken, New Jersey, for a facility in Hermosillo.

Triumph Group Inc. is reducing its number of employees in Spokane, Washington, and moving production of fiber-composite parts to Zacatecas and Baja California, Mexico.

Ross Baldwin, CEO of Tacna Services Inc., which helps companies relocate, expressed concern about Trump's often-repeated promise to scrap the NAFTA treaty, which Trump blamed on Democratic presidential nominee Hillary Clinton, even though it was President Bill Clinton who signed it.

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"There’s cautious optimism and a hopeful attitude that cooler heads will prevail in Washington," Baldwin said.

Baldwin's San Diego-based Tacna Services Inc. helps manage 4,500 workers in Mexico where employees are paid about one-fifth of what Americans make in factory jobs.

Alan Russell heads the Tecma Group in El Paso, Texas, which also assists U.S. companies in operating and opening factories in Mexico.

"This isn’t about taking jobs from the U.S.," Russell insisted. "It’s about saving companies."

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He pointed out that European companies outsource their work to the Czech Republic, while Asia uses Vietnam for cheap labor, and U.S. companies rely on Mexico to save money.

But House Republicans are considering a plan to add a 20 percent border adjustment tax that would increase the price of imported goods to the U.S., something that worries all-American retail stores like Wal-Mart that depend on cheap foreign goods and labor.

During his first speech to a joint session of Congress in February, Trump said he wanted to make it easier for American companies to do business in America with a big tax cut, noted FactCheck.org:

But to accomplish our goals at home and abroad, we must restart the engine of the American economy -- making it easier for companies to do business in the United States, and much, much harder for companies to leave our country.

Right now, American companies are taxed at one of the highest rates anywhere in the world. My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone. It will be a big, big cut.

Sources: Bloomberg Politics, FactCheck.org / Photo credit: Sgt. 1st Class Gordon Hyde/Wikimedia

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