Since President-Elect Donald Trump won the election on November 8th, he has made it a priority to go after companies that he views as failing the American consumer and the economy alike. He frequently makes his displeasure known through his infamous Twitter account. With the haste and skill with which he took on Boeing and Lockheed Martin, Trump has many in the American business community wondering what companies could be in his crosshairs in 2017 and beyond.
The Impact of Trump’s Tweets
Trump makes no secret of his preference of communicating with the American public via social media. He frequently sends out tweets from Twitter to address the public directly rather than using the mainstream media for this purpose. However, as witnessed in recent weeks, his tweets often bear the weight that could be devastating to a company’s stock.
After he openly questioned Boeing’s $4 billion price tag that was attached to the new Air Force One project, Trump singlehandedly sank the company’s stock for several consecutive days. While the stock eventually rose back to its pre-Tweet level, it clearly reacted to Trump’s targeted social media attack on Boeing.
Perhaps in a bid to get on Trump’s good side even before he takes office on January 20, Lockheed Martin quickly offered its help in creating a new Air Force One at a price tag that Trump would appreciate. In return, Lockheed Martin’s stock held its place solidly in the market and garnered favor from stock brokers and investors.
It is clear that Trump’s business prowess will play a definite role in how the economy evolves during his administration. Companies that normally courted the favor of the federal government have been put on edge and are now veritably scrambling to stay out of the way of President-elect Trump’s Twitter arrows. However, some of the businesses for which Trump may come next include Booz Allen Hamilton and Walmart, both for failing to deliver on promises of quality service and economic performance during Obama’s administration.
The Background of Trump’s Economic Vision
What exactly does President-elect Trump envision for the American economy? Is his vision folly or does he stand a chance of bringing it to fruition? The juries on both matters remain heavily engaged in debate. Nonetheless, President-elect Trump makes his plans clear on his campaign’s website as well as on his own social networking accounts. He says his plan for America is simple: Going forward with him as president, America will buy American products and make American products. This sweeping vision to bring as many jobs and businesses back to American soil is designed to boost the economy and put the masses back to work.
However, some companies continue to resist President-elect Trump every step of the way especially since they continue to reap the benefits of Obama’s tax breaks for keeping manufacturing jobs offshore. Many of these businesses are not taxed on what they earn internationally; they also do not have to pay taxes on products that they ship back to stateside. With incentives like those, why would they want to relocate their jobs and businesses back to the U.S.?
However, President-elect Trump vows to heavily tax businesses that refuse to bring factories and jobs back to U.S. at a rate of 30 percent at the border. While some businesses may be standing on principles right now, they may quickly change their mind once Trump is sworn in and takes control of the Oval Office. For their livelihood, they may have no choice but to cooperate with Trump’s vision of rebuilding the American economy with an influx of jobs and products that are made in the U.S.
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