Trump threatens Apple; Modi’s plan to lure companies away from China to do in India derails

With many companies reflecting on the idea of ​​expanding their manufacturing bases in more than one country, India has taken a step forward to attract them to offer land and promise a fruitful future.
Image: Reuters

In what may be a major setback to Prime Minister Narendra Modi’s ambitious plan to lure multinational companies away from China to do in India, the US President. USA It has threatened companies like Apple with tax deterrence if they do. Donald Trump said he could impose new taxes on American companies that move their manufacturing bases from China to any country other than the United States. Donald Trump has called the taxes as an incentive for companies to return manufacturing to the United States, the PTI news agency reported, citing an interview. Trump has repeatedly asked American companies to shift their manufacturing to the United States to help create more jobs, a move that resonates with his “Make America Great Again” agenda.

Donald Trump was asked for his opinion on reports coming in that Apple is moving a significant portion of its manufacturing to India and away from China to reduce logistics disruptions. To this, the President of the United States said, “If they do, you know, we gave Apple a little break because they are competing with a company that was part of a trade agreement that we made.” So it was a little unfair to Apple, but we don’t allow it anymore. They know that if we wanted to establish our own border like other countries do, Apple would manufacture 100 percent of its product in the United States. This is how it would work. “

Global supply chains were affected by the emergence of the deadly coronavirus in China when the virus spread throughout Wuhan and parts of Hubei province, forcing the Xi Jinping government to isolate the province and put the Chinese economy in a virtual deadlock.

Donald Trump said that instead of giving incentives to American companies to return their manufacturing to the country, he would charge them taxes for moving to a place other than the United States. The President of the United States says they will not do much for the companies to return them to the United States. Instead, he said that companies will have to return to the country. China has been at the center of Donald Trump’s speeches time and time again, where he has spoken about the coronavirus originating in China. Donald Trump also ridiculed the argument given by companies to establish manufacturing bases in China, saying the United States should have all supply chains rather than spread across the world.

With many companies reflecting on the idea of ​​expanding their manufacturing bases in more than one country, India has taken a step forward to attract them to offer land and promise a fruitful future. Prime Minister Narendra Modi in his recent speech spoke about making India a strong part of the global supply chain. In an attempt to achieve that goal, India is already making peace and has even carved out a piece of land, the size of Luxembourg, according to Bloomberg. State governments have also made efforts, with Uttar Pradesh Prime Minister Yogi Adityanath taking the lead and offering various benefits to companies operating in the state.