Why Trump's Threats May Not Stop Offshoring Of US Jobs

New York: President-elect Donald Trump's threats to retaliate against US companies planning to shift operations overseas constitute a new risk for multinationals, but may not sway those already planning to offshore jobs. 

Trump laid down the gauntlet on Thursday at a campaign-style rally after striking a deal with Carrier to keep about 1,100 jobs in Indiana in exchange for $7 million in state tax incentives over 10 years. 

"Companies are not going to leave the United States any more without consequences. Not going to happen," Trump told the cheering crowd. 

"They can leave from state to state, and negotiate deals with different states, but leaving the country will be very, very difficult." 

The president-elect did not offer details on how he planned to pressure companies to keep jobs in the United States, but tweeted Sunday that there "will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, A.C. units etc., back across the border." 

In an early Sunday morning tweet storm, the president-elect fired off six back-to-back posts on the topic, promising that "The U.S. is going to substantially reduce taxes and regulations on businesses." 

"Any business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. without retribution or consequence, is WRONG!" Trump tweeted. 

One obvious lever Trump could use would be the removal of government contracts. That could make companies that work in defense, public works and public services especially vulnerable to retribution. 

"Boeing, for example, would have to play ball if it wants its government contracts renewed," said one expert who requested anonymity. 

Trump coupled the threat with a promise to make the United States a better place for business by cutting taxes and streamlining regulations. 

"There are a lot of plans already in place," said Hal Sirkin, a manufacturing expert at the Boston Consulting Group. 

"CEOs are following the news closely and trying to figure out what all of this could mean for their businesses." 

Will threats work? 

Some companies said Trump's broadside was not sufficient to compel a change in plans, although Trump advised them Sunday via Twitter to "Please be forewarned prior to making a very expensive mistake! THE UNITED STATES IS OPEN FOR BUSINESS." 

Caterpillar announced in March 2015 it plans to shutter a plant in Joliet, Illinois that makes oil pumps and valves, and move 230 jobs to Mexico. 

"We are continuing to execute on the previously announced plan on the stated timeline," said Matt Lavoie, a spokesman at Caterpillar. 

Food giant Mondelez International also signaled it would proceed with plans to relocate hundreds of jobs from an Oreo cookie plant in Chicago to Mexico. 

"We have not had any contact with the new administration," said Mondelez spokeswoman Laurie Guzzinati, adding that the Chicago baker remains an "important part of our manufacturing network" and that it continues to make Oreos at three US factories.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)