In what can be a major setback for Prime Minister Narendra Modi’s ambitious plan to woo multinational companies away from China to make in India, US President has threatened companies such as Apple with tax deterrent if they do so. 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. Donald Trump has termed taxation as an incentive for companies to return the manufacturing to the United States, news agency PTI reported citing an interview. Trump has time and again asked American firms to shift their manufacturing to the United States to help create more jobs, a move that resonates with his agenda of ‘Make America Great Again’.
Donald Trump was asked his views on reports coming in about Apple shifting a significant part of its manufacturing to India and away from China to reduce logistical distrumptions. To this the President of the United States 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.”