Washington, Dec 4: Cracking a whip on American companies that either outsource jobs or build a new factory in another country, US President-elect Donald Trump today warned of imposing a whopping tax of 35 per cent on products made by such companies.
This could have an impact on plans of several American companies that are planning to establish manufacturing base in India to take advantage of the 'Make in India' policies unveiled by the Indian government.
The U.S. is going to substantialy reduce taxes and regulations on businesses, but any business that leaves our country for another country,— Donald J. Trump (@realDonaldTrump) December 4, 2016
fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. ......— Donald J. Trump (@realDonaldTrump) December 4, 2016
without retribution or consequence, is WRONG! There will be a tax on our soon to be strong border of 35% for these companies ......— Donald J. Trump (@realDonaldTrump) December 4, 2016
wanting to sell their product, cars, A.C. units etc., back across the border. This tax will make leaving financially difficult, but.....— Donald J. Trump (@realDonaldTrump) December 4, 2016
He said this tax will make leaving financially difficult, but these companies could move between all 50 states, with no tax or tariff being charged.
"Please be forewarned prior to making a very expensive mistake. The United States is open for business," Trump said in his last tweet of the day.
This was one of his major election platform that propelled him to a stunning victory overcoming 17 candidates in the Republican primaries and a well-established Hillary Clinton from the Democratic Party in the November 8 general elections.
(With inputs from PTI)