This is the Cato Daily Podcast for Tuesday, January 10th, 2017. I'm Caleb Brown.

President-elect Trump has singled out companies like Ford, Carrier, and Toyota for direct

recrimination, but the benefits of manufacturers

deciding to keep more production in the US may not balance out the impact of a

president willing to threaten companies who don't play ball.

Simon Lester, trade policy analyst at the Kido Institute, comments.

As we continue this series talking about President-elect Trump and Trade, he recently was, as you might expect,

tweeting about Toyota suggesting that their plans to build a new plant in, as he says, Baja Mexico to build

Corollis for the US. No way build Plantin US or pay big border tax. Now of course

he's confusing a plant that already exists in Baja with

one that is planned in, I'm going to screw this up, Guanahato, Mexico, which of course it's interesting to note this plant is not moving

production from the US, it is not, it's moving from Canada to Mexico.

So, but there are a lot of issues here that we should talk about in turn.

One is that a tweet drove down Toyota's stock price briefly.

Yes, Donald Trump is famous for his tweeting and I think to some extent we should not take it all too

seriously let's wait for some policies to evolve at the same time though as you

point out when a tweet can bring down a company stock price in a not insignificant amount that affects a lot of people.

That affects shareholders, that affects people's retirement funds.

I think it should go without saying that presidents and others should be a little more careful

about how they present these issues if it's going to have this kind of impact on companies.

Okay, so now this isn't the first time that Donald Trump has taken on, specifically automakers

that have investments in the U.S.

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