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Meg Whitman: A border adjustment tax will not create US jobs

Republican businesswoman Meg Whitman told CNBC that she's "very concerned" about a proposed border adjustment tax being discussed in Congress.

"My view is that this does not create jobs," Hewlett Packard Enterprise CEO Whitman told "Squawk on the Street" on Friday. "It actually lowers the number of jobs for many, many companies."

Whitman endorsed Hillary Clinton in last year's presidential election, but told CNBC after Election Day that she would support President Donald Trump. Whitman said on Friday that she's working closely with Congress to ensure that her point of view is understood.

Trump has said he thinks a form of the tax could create jobs.

"I certainly support a form of tax on the border," Trump told Reuters on Thursday. "What is going to happen is companies are going to come back here, they're going to build their factories and they're going to create a lot of jobs and there's no tax."

Meg Whitman, Chairman and CEO of Hewlett-Packard at the 2016 World Economic Forum in Davos, Switzerland.
David A. Grogan | CNBC
Meg Whitman, Chairman and CEO of Hewlett-Packard at the 2016 World Economic Forum in Davos, Switzerland.

Hewlett Packard Enterprise does assemble many products in U.S. cities like Chippewa Falls, Wisconsin and Houston, Texas, Whitman said. But the entire supply chain is a different story.

"The border adjustment tax is not good for companies that have a relatively low margin with a supply chain that is outside the United States," Whitman said. "Everything that is in our products comes from overseas. And by the way, that supply chain has taken 30 years to set up. So when all those components come in and are taxed, it's not going to be good."

Shares of Hewlett Packard Enterprise fell on Friday morning after the company reported lower-than-expected quarterly revenue and slashed its outlook for the year. One challenge for the company was foreign exchange rates.

"Around the world, I would say the macroeconomic environment is uncertain," Whitman said. "Uncertainty is not our friend."

Still, Whitman said she said the company is on the right track.

"But I'm not terribly worried about that," Whitman said. "I think we've got the right product line, we've got new products. We are now organized to deliver.... we are leaning hard into new technologies."

— Reuters contributed to this report.