Carrier Will Keep 1,000 Jobs in U.S. After Discussions With Trump Admin

November 30, 2016

Carrier Corp. announced Tuesday evening after discussions with President-elect Donald Trump's incoming administration that it will keep 1,000 jobs in the United States that the the air conditioning manufacturer had originally planned to move to Mexico.

Trump said both sides had come to an understanding with the new administration to not outsource the jobs to Mexico. They will stay in Indiana.

Trump will be traveling to Indiana on Thursday to officially announce the deal, but specific details have yet to be released, according to the New York Times.

From the earliest days of his campaign, Donald J. Trump made keeping manufacturing jobs in the United States his signature economic issue, and the decision by Carrier, the big air-conditioner company, to move over 2,000 of them from Indiana to Mexico was a tailor-made talking point for him on the stump.

On Thursday, Mr. Trump and Mike Pence, Indiana's governor and the vice president-elect, plan to appear at Carrier's Indianapolis factory to announce a deal with the company to keep roughly 1,000 jobs in the state, according to officials with the transition team as well as Carrier.

A Youtube video went viral in February of Carrier employees being told that their jobs would be relocated to Monterrey, Mexico. At the time the video was being shared, Trump, who at the time was a presidential candidate, seized on it as a critique of free trade policies, which he argues have led to the outsourcing of American jobs.

On Thanksgiving, Trump tweeted that he had been in contact with Carrier executives in hopes of striking a deal to keep the jobs from moving to Mexico.

Vice President-elect Mike Pence included new incentives from the state of Indiana, where he is governor, in the announced Carrier deal, CNBC reported.

Under a deal negotiated by Vice President-elect Mike Pence and UTX CEO Greg Hayes, the company will now keep most of those jobs in Indiana, sources close to the matter told CNBC.

While terms of the deal are not yet clear, the sources indicated there were new incentives on offer from the state of Indiana, where Pence is governor, that helped clear a path for the agreement.

While UTX was seeking the savings that would come from moving some production to Mexico, people familiar with the situation indicated that the savings were not worth incurring the wrath of the incoming administration, including the potential threat to the significant business that UTX currently conducts with the U.S. government, largely in the form of orders for jet engines and other defense-related equipment.