Trump warns of imposing 30% tax on American firms taking jobs abroad
The Dollar Business Bureau
Sticking to his pre-election rhetoric, US President-elect Donald Trump on Sunday warned of imposing a 35% tax on products manufactured by American companies that either requires jobs to be outsourced overseas or build a new manufacturing facility in another country.
The decision if implemented will have negative impact on several American companies which are planning to locate their manufacturing units in India under Prime Minister Narendra Modi-led Make in India initiative, in turn giving a significant dent to Make in India ambitions.
"The US is going to substantially reduce taxes and regulations on businesses, but any business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the US without retribution or consequence, is WRONG!" Trump said.
"There will be a tax on our soon to be strong border of 35 per cent for these companies wanting to sell their product, cars, A.C. units etc, back across the border," said Trump.
He said this whopping tax rate would force companies to stay within the United States, and he would impose no tax or tariffs if these companies plan to move anywhere between the 50 states in the country.
"Please be forewarned prior to making a very expensive mistake. The United States is open for business," Trump said in a series of tweets.
Ever since Trump started his election campaign in 2015, he has been reiterating his commitment to bring back jobs by forcing American-origin multinational companies to relocate their manufacturing bases in the US.