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Fact check: What are the main reasons companies cite for leaving America?

Checked on August 27, 2025

1. Summary of the results

Based on the analyses provided, companies cite several key reasons for relocating within or leaving America:

Primary drivers for domestic relocations:

  • Business climate and lower taxes emerge as the top reason, with 21 companies citing this factor in 2024 [1] [2]
  • Access to consumer bases was the second most cited reason, accounting for 19 relocations [1] [2]
  • Labor availability and access to lower-cost tech talent also played major roles in relocation decisions [1]
  • Workforce alignment was identified as another driving factor [3]

Geographic patterns:

The technology and manufacturing sectors led relocations, with each accounting for 28 moves in 2024 [2]. Texas emerged as the most popular destination, hosting over a quarter of relocations, while companies frequently exited California for states like Tennessee, Arizona, and Colorado [3].

International departures:

For companies leaving America entirely, tax policy changes represent a significant factor, specifically the closure of the 'de minimis' tax exemption resulting in additional fees [4]. The quest for low costs remains the primary driver of global production shifts, though companies also seek shorter lead times, more stable business environments, and greater flexibility to respond to disruption [5].

2. Missing context/alternative viewpoints

The analyses reveal several important contextual factors not immediately apparent in the original question:

Scale and scope of relocations:

  • Over 90% of North American companies have relocated production and sourcing over the past five years [5]
  • The phenomenon includes both domestic relocations within the US and international departures

State-level tax competition:

High-tax states like California and New York are losing companies and individuals to low-tax states like Florida and Texas, creating significant population shifts and economic impacts [6]. This suggests that state governments benefit from lower tax policies by attracting businesses, while high-tax states may lose revenue and economic activity.

Manufacturing challenges:

The US faces specific challenges in manufacturing, including difficulties finding workers and competition from countries like Mexico and India [7]. Tariff policies have created additional complications, potentially contributing to manufacturing job losses despite intentions to protect domestic industry [8].

Global tax policy implications:

Other countries may gain from global minimum corporate tax policies while the US potentially loses out due to its global tax policy choices [9], suggesting that international competitors benefit from US tax policy decisions.

3. Potential misinformation/bias in the original statement

The original question itself does not contain misinformation, as it simply asks for information about company relocations. However, the framing could potentially lead to incomplete understanding:

Oversimplification risk:

The question focuses on companies "leaving America" but the data shows that many relocations are domestic moves within the United States rather than international departures [1] [3] [2]. This distinction is crucial for understanding the actual economic impact.

Missing temporal context:

The analyses don't provide clear publication dates, making it difficult to assess whether the data reflects current trends or historical patterns. The most specific data comes from 2024 and 2025 reports [1] [2].

Incomplete coverage:

Some sources focus on specific aspects like tariff impacts [4] [8] or manufacturing challenges [7] without providing comprehensive data on all reasons for corporate relocations, potentially creating a fragmented picture of the overall phenomenon.

Want to dive deeper?
What are the most common destinations for US companies relocating abroad?
How does the US corporate tax rate compare to other developed countries?
What role does trade policy play in companies deciding to leave America?
Can companies that leave America still benefit from US trade agreements?
How do state and local governments in the US incentivize companies to stay?