New Tax Could Be Imposed On Companies Manufacturing Overseas Says Trump

New Tax Could Be Imposed On Companies Manufacturing Overseas Says Trump

Highlights:

  • Trump to charge a new tax on companies who are manufacturing overseas
  • He wants to bring the manufacturing back to the US
  • Even Apple will not be excused from this tax

The President of the United States of America, Donald Trump, is threatening the US companies to be slapped with new taxes such as Apple are talking of moving their manufacturing plants from China to countries such as Ireland, and India instead of the US during the novel Coronavirus outbreak.

Trump said that the taxation will be an incentive for those companies who return to the US with their manufacturing plants, while speaking to the Fox Business News during an interview.

He was asked, “Apple said now they’re going to go to India. They’re going to do some production in India away from China,”.

Trump, in reply, said, “If they do, you know, we gave Apple a little bit of a break because they’re competing with a company that was a part of a trade deal that we made. So it was a little bit unfair to Apple, but we’re not allowing this anymore. You know if we wanted to put up our own border like other countries do to us, Apple would build 100 per cent of their product in the United States. That’s the way it would work,”.

Apple is looking forwards to shift 20% of its production capacity to India from China, which will be a substantial loss of the China economy.

Also Read: New Cases In China’s Wuhan, Experts Fear Of Second Wave Of Coronavirus

Many tech companies saw a disruption in their supply lines who are either manufacturing products in China or procuring material from the country after the deadly virus took over Wuhan and the World in the following weeks.

In the interview Trump said, “These companies have to get on the ball because they’re going not only to China. You look at where they’re going. They’re going to India and they’re going to Ireland and they’re going all over the place, they make them,”.

When he was asked, “So, you don’t think you need to do anything in terms of incentives,”.

He replied, “I have to do it,”.

“One incentive, frankly, is to charge tax for them when they make products outside. We don’t have to do much for them. They have to do it for us,” said the US President. He added that he wants to bring manufacturing back to the US.

The 73 year old also said, “And now they’re not fighting. These stupid supply chain that are all over the world, we have a supply chain where they’re made in all different parts of the world and one little piece of the world goes bad and the whole thing is messed up. I said we shouldn’t have supply chains. We should have them all in the United States. We have the companies to do it. And if we don’t, we can do that,”.

Trump has routinely threatened to raise tariffs on consumer electronics during his ongoing trade war with China. As of now, the world has reported over 4.5 million (45 lakh) cases of the novel Coronavirus out of which more than 300,000 people have lost their lives. The US is was hit worse than China as it sees more than 1.4 million (14 lakh) cases of the deadly virus of which close to 87,000 people have lost their lives.

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Ajay Kumar

Ajay joined our team as a content writer after earning his master's degree. He has been writing for since his graduation as a freelancer and raises voice for the people in need with his work. He likes to work on data-driven news reports. When he is not writing, he spends his time with his family.

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