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Trump warns businesses of penalties for leaving the U.S.

Trump says companies cannot expect to cut U.S. jobs and move overseas "without retribution or consequence."
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Donald Trump has warned businesses thinking of moving to other countries at the expense of American jobs to expect penalties for trading in the U.S.

In a series of tweets in the early hours of Sunday morning, the President-elect said companies should "be forewarned prior to making an expensive mistake!"

During the election, Trump floated the idea of a 35 percent tariff on Fords in the event the carmaker shifts its small car production to Mexico (which it is doing, but without cutting any U.S. jobs), but Sunday's tweets suggest this tariff could be implemented more broadly.

The criteria, it would seem, for companies that incur a 35 percent import tax when selling these foreign-made products in the U.S. would be as follows:

He went on to say that companies are free to move around without fear of penalty within the 50 states.

Implementing such a tariff would generally require approval from Congress, which has the power of taxing other nations, but CNN Money reports there are a few ways a president could get around it, including by declaring the loss of jobs to other nations a "national emergency."

Palin says Carrier deal could lead to 'crony capitalism'

The comments come after Trump negotiated a deal with Indiana–based air-conditioning company Carrier to keep 1,100 jobs in the state, which is governed by his vice-president Mike Pence.

Carrier, which according to the Independent Journal Review is still sending 1,300 other jobs to Mexico by the end of 2017 in spite of Trump's intervention, is receiving around $7 million in incentives from the state to keep the 1,100 jobs in Indiana.

His involvement has come in for criticism including from some notable Republicans, among them Sarah Palin, who in a piece she wrote for Young Conservatives suggested it's a sign of "crony capitalism" (explanation here).

"Politicians picking and choosing recipients of corporate welfare is railed against by fiscal conservatives, for it’s a hallmark of corruption. And socialism," she writes.

"However well meaning, burdensome federal government imposition is never the solution," she added. "Never, not in our homes, not in our schools, not in churches, not in businesses."

Nathan Jensen, a professor at the University of Texas, told CNN Money the move could set a worrying precedent with companies threatening to move their business overseas in exchange for tax incentives.

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