The U.S. government ready to tax off-shore companies if they don’t return home

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According to sources close to U.S. officials, the Trump administration is ready companies to take radical steps in an attempt to dissuade Chinese based companies from moving their manufacturing and production lines to other countries instead of America.

President Trump on new taxes

When asked about global tech giant Apple reportedly moving their production lines to India from China, following the COVID-19 pandemic, the U.S. President Donald Trump had this to say regarding the matter at an interview with Fox Business News. “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,”Trump said.

According to the President, if the U.S. laid protocols similar to other countries, they too should have a “wall” which would force companies like Apple to manufacture their products 100% in the U.S. The President did not hold back as he threatened to impose heavy taxes on all American companies. To force them to move their manufacturing and production lines back to the U.S. instead of countries like India and Ireland. He further added that the taxation shouldn’t be viewed as a penalty instead as an incentive. To return the manufacturing bases to their country of origin.

Several government officials have voiced their opinions regarding the matter. And most are of the same idea that this move is, in part. The punishment meted out to Beijing for mishandling and mismanaging the Coronavirus outbreak.

The “turbocharge” efforts

This matter has been brewing in the works ever since the COVID-19 outbreak. Several tech company’s manufacturing lines. As the situation developed, nationwide, and later global lockdown ensued. On the back of the events, companies, including Apple, started initial planning. And movements to relocate bases to countries that include Ireland and India.

According to the U.S. president, this is the very fact that had irked him. He has voiced his concerns regarding the fact that instead of U.S. companies working to develop other countries through skills training and necessary infrastructure, why not do the same at home base. Should companies ever move back to the U.S., he suggested taxing them if they don’t. According to him, they must re-shore their entire operations. “One incentive, frankly, is to charge tax for them when they make product outside. We don’t have to do much for them. They have to do for us,” Trump said.

As of now, the matter stands at a still, and companies will have to wait it out to know more about the final government call regarding this matter. The way things that the President is quite sure of his standing. And the world is ever so slowly but surely coming back to its usual busy self.

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