Washington: US Vice President JD Vance has warned that companies shifting American jobs overseas or replacing US workers with legal immigrants could face steep tariffs, outlining the Trump administration's approach to protecting domestic employment and encouraging manufacturing investment.

Addressing a Republican midterm election rally in Lima, Ohio, Vance said the administration would reward companies that manufacture goods in the United States and employ American citizens, while penalising businesses that move production and jobs abroad.

"If you're making things in America and you're employing American citizens to do it, great. We're gonna give you a big fat tax cut and we're gonna reward you for building and expanding production," Vance said.

"But if you're sending American jobs overseas, if you're trying to ship your factory to a foreign corporation or you're trying to replace American workers with a legal immigrant later, you know what you're gonna get? A big fat tariff," he told supporters.

The remarks are significant because Vance explicitly referred to legal immigrants while describing the administration's efforts to protect American workers.

The Vice President did not identify any new tariff measure specifically targeting employers of legal immigrants or explain how such a penalty would be implemented.

His comments nevertheless highlighted the administration's emphasis on giving preference to American citizens in employment and encouraging companies to expand production within the United States.

Vance framed the administration's policies as an effort to reverse decades of industrial decline and prevent American manufacturing jobs from moving overseas.

Drawing on his upbringing in Middletown, Ohio, he recalled watching factories close and families struggle after workers lost their jobs.

"I know what it does to families when mom or dad loses their job," he said.

The Vice President argued that government policy should encourage companies to invest in domestic production rather than move jobs to foreign countries.

"We are gonna fight for our people," he said.

Vance also claimed that the administration's economic policies had attracted trillions of dollars in investment and generated new manufacturing employment.

He cited planned investments by automobile, aerospace and pharmaceutical companies in Ohio as examples of businesses expanding American manufacturing operations.

Among them, he referred to a $400 million investment by Stellantis in automobile manufacturing, an $850 million aerospace project and a $2.2 billion pharmaceutical manufacturing investment.

The Vice President also criticised Democrats over immigration and employment policies, accusing the previous Biden administration of allowing illegal immigration to undermine wages and job opportunities for American workers.

His remarks formed part of a broader campaign speech supporting Republican candidates, including Indian-American entrepreneur Vivek Ramaswamy, who is running for Ohio governor, and Senator Jon Husted.

This report was published from a wire feed. Apart from the headline, the EdexLive Desk has not edited the copy.