Over the weekend, President-elect Donald Trump continued his push for American companies to concentrate their business inside the United States. On Friday night, Trump tweeted the following message to supporters in Florida:
“Thank you Florida. My Administration will follow two simple rules: BUY AMERICAN and HIRE AMERICAN!”
While Trump’s pro-American business policies may be a major pain to companies that rely on cheap foreign labor, Trump may provide financial incentives for those already “reshoring” U.S. jobs.
Rising labor costs in China and other foreign countries coupled with rising international shipping rates has already led some U.S. companies to start bringing jobs back to America.
General Electric Company (NYSE: GE) recently shifted hundreds of water heater production manufacturing jobs from China to Kentucky.
Wal-Mart Stores, Inc. (NYSE: WMT) has also been choosing American labor as part of its Made in USA initiative.
Ironically, Ford Motor Company (NYSE: F) and Boeing Co (NYSE: BA), two companies of which Trump has been openly critical, are among the U.S. companies reshoring the most jobs. Together, Ford and Boeing have brought back a combined 5,900 U.S. jobs.
If these companies continue to bring back American jobs from overseas, Trump may change his tune and could even create tax credits or other potential rewards for these pro-America companies. If that’s the case, this American pride could translate to stock market gains for the blue-chip stocks during the Trump presidency.
Image Credit: By Gage Skidmore from Peoria, AZ, United States of America (Donald Trump supporters) [CC BY-SA 2.0], via Wikimedia Commons
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