President-elect Donald Trump described the outsourcing of American business operations as outside the domain of free market economics in a Sunday-aired interview with Fox News Channel.
In a prerecorded interview with Chris Wallace for Fox News Sunday, Trump described the importation of products manufactured abroad by America-based companies as the "dumb market".
Trump also repeated his call for a thirty-five percent tariff to be imposed on imports of products manufactured abroad by American companies.
“There are going to be consequences for that,” said Trump, referring to American companies who outsource their business operations.
INDIANAPOLIS, IN - DECEMBER 1: President-elect Donald Trump and Vice President-elect Mike Pence take a tour of Carrier Corporation in Indianapolis, IN on Thursday, Dec. 01, 2016. (Photo by Jabin Botsford/The Washington Post via Getty Images)
Read the partial transcript below, via Fox News:
WALLACE: You recently intervened with Carrier to save about a thousand jobs from moving to Mexico.
WALLACE: You've said at one of your rallies you're asking for a list of ten companies that are thinking about outsourcing so you can call them as well. Should the president of the United States be calling companies? I mean, how would you have felt if Barack Obama gets on the phone and says, "Hey, Donald, here's how I want you to do business"?
TRUMP: I would have been honored. So, let me just tell you --
TRUMP: -- I don't have to do it myself. I have great people. We have top, top smart people. But it's so easy to do.
And we're going to have to impose a major tax on companies that leave, build their product, and think they're going to sell it right to our border, like we’re a bunch of --
WALLACE: What happen to the free market, sir?
TRUMP: That is -- that's not free market when they go out and move and sell back into our country.
WALLACE: But that's the free market. They've made a decision that makes --
TRUMP: No, that's the dumb market, OK? That's the dumb market.
I’m a big free trader. But it has to be fair. So, what's happened is we have lost, over a period of years, short years, 70,000 factories in this country. Chris, 70,000.
I always say to people, I think it's a typo. How could it be so many? Seventy thousand factories. We're being stripped of our workers. We're being -- I mean, we're being stripped of our jobs, our good jobs are really going down, and we've got to stop it. And the only way you're going to stop it, the nice way is, we're reducing taxes very substantially for companies so they’re not going to have to leave because of taxes. We'll be reducing regulations. Now those are the nice ways of doing it and everyone loves it and everyone’s happy. Businesses, way down. Also middle class, but way down, OK, taxes and regulations.
But when a company wants to move to Mexico or another company -- or another country and they want to build a nice, beautiful factory and they want to sell their product through our border, no tax, and the people that all got fired, so we end up with unemployment and debt, and they end up with jobs and factories and all of the other things, not going to happen that way. And the way you stop it is by imposing a tax.
Now, I've come up with a number of 35 percent. There is no tax if you don't leave. There is no tax at all. You know, people are saying, they don't understand, really, what I'm doing. I read The Wall Street Journal the other day. Honestly, their editorial board doesn't get it. I don't think they understand business. I don't think The Wall Street Journal editorial board -- and I know some of them. They're really nice. I don't think they understand business. They don't understand what I'm saying.
There's a 35 percent tax, but there is no tax if you don't move. But if you move your plant or factory and you want to sell back into our country, you fire all your people, there are going to be consequences for that. There are going to be consequences. You know what’s going to happen?
TRUMP: I’ll tell you.
TRUMP: Nobody’s going to move. They're not going to move. They're not going to leave. They're going to stay here.
Watch the segment below:
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