NASHVILLE. Tenn. (WKRN) — Gov. Bill Lee has reportedly heard concerns from Korean companies about future ICE raids and tariff policies. Local economists tell News 2 they aren't surprised.

Lee said foreign companies are worried following an ICE raid that took place at a Georgia Hyundai facility in September.

“I just spent several days in Korea talking to Korean businesses, and many of them are concerned,” Lee said Tuesday while addressing the media. “There were a lot of questions about, you know, visa status and what the future is for workers starting up a plant.”

Lee added President Trump addressed concerns when he was in Asia as well.

"President Trump addressed that when he was there, he was in Asia at the same time, suggesting what happened in Georgia, for example, was not the outcome that he wanted," Lee said.

Middle Tennessee State University Economics Professor Daniel Smith said he doesn't blame foreign companies for having these concerns.

“These companies come and make investments, and there's going to be a process of training and sending people over to the United States to incorporate American hires into their systems,” Smith said. 

He said this is a necessary process, but he understands foreign workers are worried about safety.

“There's going to be a process of training and sending people over to the United States, and to the extent that these foreign workers are scared of being arrested or even just temporarily raided, and the inconvenience and fear of that being sent on an airplane back, it's going to raise their reservation wage, what they're going to demand in compensation,” Smith explained.

Historically, Smith said, working in the United States has been viewed as a safe country for foreign companies. However, following ICE raids in Georgia, some are thinking the opposite.

“It's very hard for these companies to make long-term million-billion-dollar investments when they don't know what the cost of inputs is going to be,” he added.

According to Smith, work visas and tariff policies go hand in hand. Currently, Supreme Court hearings are challenging President Trump's tariffs.

“Economists oppose tariffs across the board,” Smith said. “If they are going to impose tariffs, they should at least impose tariffs consistently and stabilize. So we know this is what the tariffs are going to be. So then companies can make decisions and forecast based upon those rates.”

Smith added there will be a ripple effect in Tennessee's economy if foreign companies choose to leave.

“I think long-term, we're looking at reduced economic growth and prosperity permanently if we do not address these problems,” he expressed. “We're also fraying relationships with long-standing allies.”

Lee said there are over 70,000 foreign employees currently working in Tennessee.

“We have 275 or so companies from Taiwan, Korea, and Japan that have facilities in Tennessee,” he said.

Regardless of the political climate, Lee said it is still a good time to recruit foreign companies to the Volunteer State.

News Source : https://www.wkrn.com/news/tennessee-news/korean-companies-voice-concerns-to-gov-bill-lee-over-ice-raids-tariffs/