The state of Wisconsin has negotiated a dramatically scaled-back deal with Taiwanese contract manufacturer Foxconn. The move, announced Tuesday by Democratic Gov. Tony Evers, is a repudiation of a deal negotiated four years earlier by his Republican predecessor, Scott Walker.
The original deal envisioned Foxconn spending as much as $10 billion to manufacture a state-of-the-art factory for manufacturing large liquid-crystal display panels. The deal was announced in 2017, and then-President Donald Trump traveled to Wisconsin for the 2018 groundbreaking, describing the new factory as “the eighth wonder of the world.” Foxconn was supposed to get $2.85 billion in state and local incentives under that original deal.
The deal may have been savvy politics for Foxconn in 2017. The company assembles consumer electronics products for Apple and other American companies—products that are often then sent back to the United States for sale. So Trump’s protectionist inclinations seemed like a serious threat. Announcing plans to create of thousands of jobs in a key battleground state gave Trump something to boast about, and that may have helped Foxconn curry favor with the new administration.