The Donald Trump administration is reportedly drawing up a plan to use the Inter-American Development Bank (IDB) to incentivize American manufacturers to move their factories out of China and into the United States, Latin America, and the Caribbean.
The man behind the move is said to be Mauricio Claver-Carone, President Trump’s LatAm adviser, who has stood for the presidency of the IDB. The reshoring could bring between US 30 billion and 50 billion in investment back to American shores, Mauricio told Reuters in an interview recently.
There are more than 2,200 American companies manufacturing goods for US consumers in China, according to the USA Minority Chamber of Commerce (USAMCC).
“The basis of this program is to have IDB as a natural ally under the leadership of Mauricio… and move financial resources into relocation efforts,” the Chamber stated.
In addition to the IDB, several US government agencies are also working on plans to push American companies out of China. “Tax incentives and potential re-shoring subsidies are among measures being considered to spur changes,” the Reuters report added.
The election for the IDB is scheduled for mid-September, but many countries in the region are yet to extend their support to the Trump adviser. That’s because the role is historically held by a Latin American.
To ensure that the initiative becomes successful, more than 500 cities (across the Americas) have been selected as “destinations where we will begin to establish technological infrastructure” says USAMCC.
USAMCC is a private organization with more than 32,000 affiliates across the region.