US Will Impose Extra Tax On Apple If They Shift Production To India From China; Is This Bullying By President Trump?
Due to the coronavirus pandemic, the world economy has degraded to dreadful levels. With economies of different countries coming to a halt, countries having their manufacturing hubs in China are now looking forward to shifting their units to countries like India.
We have been constantly updating you about countries like South Korea and US, among others looking to relocate their manufacturing units from the communist nation to India, post the Covid-19 situation.
Prime Minister Modi has time and again advised the states to turn the coronavirus crisis into an opportunity. At present, companies from Japan, the United States, Korea and other European nations with huge investment in China are mulling to move out after the coronavirus pandemic.
The govt wants to welcome such countries into India, to expand Inida’s supply chain market deeper into the global standards. However, US President Trump has some other theories planned up. Let’s learn about it.
Trump Threatens Apple with Tax Deterrent
Narendra Modi’s ambitious plan of wooing multinational companies away from China to India has now been harshly intervened by the US President Trump.
Trump has threatened companies like Apple with tax deterrent if they plan to relocate their manufacturing units in India, due to the Covid-19, from China. He wants these companies to return to American lands rather than distributing in other countries.
Donald Trump said he could levy new taxes on American companies that move their manufacturing bases from China to any country other than the United States. He has termed taxation as an incentive for companies to return the manufacturing to the United States.
In his 2016 US Presidency campaign, Trump won the elections backing on ‘Making America Great Again’. He has been working towards it and has focused hard on eliminating immigrants from US so that they do not occupy the American jobs which is the first right of native born Americans.
In similar lines, on learning that Apple is looking forward to shifting a significant part of its manufacturing to India and away from China to reduce logistical disruptions, Trump openly said that it wouldn’t allow this on Apple’s part.
He also added that if America wanted to put up their own borders to other countries, then Apple would build 100% products only in America.
This can be a Devastating Blow to India
Trump said that instead of giving incentives to American companies to bring their manufacturing back to the country, he would tax them for moving anywhere other than the United States.
Despite of doing anything for such companies to return to US, he’d rather have them return to the country. Donald Trump also ridiculed the argument given by firms for setting up manufacturing bases in China, saying that the United States should have all the supply chains instead of them being spread across the world.
This will in a way affect India’s plan to woo multinational companies to the country to make it a strong part of the global supply chain, during this Covid-19 crisis.
India is already making amends and has even carved a piece of land, the size of Luxembourg, according to Bloomberg. Efforts have also been made by state governments, with Uttar Pradesh Chief Minister Yogi Adityanath taking the lead and offering various perks to companies that set-up shop in the state.