US President Donald Trump is threatening the US companies like Apple with taxation if move their manufacturing bases from China to other countries like India instead of the US amidst the COVID-19 outbreak.
In a major setback to Apple, US President Donald Trump is threatening the US companies like Apple with taxation if move their manufacturing bases from China to other countries like India instead of the US amidst the COVID-19 outbreak.
In an interview with Fox Business News, Donald Trump said that taxation was an incentive for the companies to return their manufacturing bases to the US and not to any other country. On asked upon the view of Apple shifting its manufacturing base to India, he told the publication that the government gave a little break to Apple because it was competing with a company that was part of a trade deal that the government 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 as 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," he added.
Donald Trump said that it will impose taxation on companies that will move anywhere other than the United States. The move will help the US government to bring back the manufacturing bases of the American companies to the US. Apple was thinking to shift a significant portion of its production from China to India. However, with this announcement, it would difficult for the Cupertino-based giant to set up its manufacturing base in a country like India.
This move will also create a hurdle for Prime Minister Narendra Modi’s ambitions to become a strong player in the global supply chain. This is primarily because Prime Minister Narendra Modi in his recent address talked about making India a strong part of supply chain and he said that the government will ease its regulation and will provide various perks to the companies that will set up its manufacturing base in the country. However, with US government announcement, it will be difficult for the American companies to shift their manufacturing base to India.
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