BUS356

1. TRUMP’S CARRIER DEAL
Nicole Kim

2. Background
• Carrier Corporation - furnace and air conditioner maker
• Parent company – United Technology
• In February, United Technologies announced the closure
of a Carrier plant in Indianapolis and a factory in
Huntington
• Loss of 1,400 jobs in Indianapolis and 700 in Huntington
• Wanted to relocate outside Monterrey, Mexico
• Save $65m a year
• Wages are cheaper there

3. Trump’s Message
• Against globalization, trade deals, and outsourcing to
Mexico
• Promises to restore manufacturing, “put America first”
• Threatens to impose stiff import tariff on goods made by
American manufacturers that moved jobs offshore
• Renegotiate NAFTA, free trade agreement between US, Mexico, and
Canada

4. The Deal
• Carrier will keep 1,100 jobs at the Indianapolis plant
• Includes 300 positions never scheduled to leave
• Still plans to send 1,300 jobs to Mexico and shutdown
factory in Huntington
• Indiana agreed to give company $7m in tax incentives
over 10 years
• Carrier will invest $16m in the state

5. Ethical Questions
• Is it okay to give benefits to individual companies?
• Did this create a bigger threat?
• Bernie Sanders
• Is it okay for businesses to make decisions that please
politicians rather than customers and shareholders?

6. Sources
• https://www.theguardian.com/us-
news/2016/dec/03/donald-trump-carrier-factory-indiana-
jobs-tax-breaks
• http://money.cnn.com/2016/12/01/news/companies/donald
-trump-carrier-jobs/
• http://www.nytimes.com/2016/12/01/business/economy/tr
ump-carrier-pence-jobs.html?_r=0