Donald Trump has questioned Boeing over Twitter regarding to how much they are charging to build the new Air Force One. Trump has been clear to identify that it is necessary but has suggested Boeing are likely to make far too much money out of the deal. Essentially this has resulted in Mr Trump threatening to cancel the order.
What this has demonstrated is that Trump is not afraid to say what he thinks and I would not be surprised if he was to review several major government contracts. The use of Twitter in these matters in my opinion is interesting as he has no fear in making his business very public. The likes of Boeing are unlikely to want to get involved in these public displays and to make these problems go away they may change the deal.
Trump tariff uncertainty
There have been major differences in opinion as to what Trumps 35% import tariff may change. Some people are in the camp that it will destroy the US’s export market whilst others believe more jobs at home could potentially cause an economic boom. As it stands Trump would implement an import tax but doesn’t seem to account for effected nations taxing US exports. It seems very unlikely that foreign governments will accept their exports costing significantly more than the US goods.
However it’s seems very clear that Trump is going to aggressively pursue this route and force businesses to bring production back to the US or accept the costs. Whether this becomes a US economic boom or an internal collapse taking the fight to globalisation is yet to be seen.