Trump pledges to im­pose bor­der tax on com­pa­nies mov­ing pro­duc­tion over­seas

Sun.Star Pampanga - - WORLD! -

WASHINGTON -- US Pres­i­dent-elect Don­ald Trump on Wed­nes­day pledged to im­pose "a ma­jor bor­der tax" on com­pa­nies that move pro­duc­tion over­seas and sell goods back to the United States.

"When you want to move your plant to Mex­ico or some other place, and you want to fire all of your work­ers from Michigan and Ohio and all these places that I won, for good rea­son, it's not go­ing to hap­pen that way any­more," Trump said at his first press con­fer­ence in New York since win­ning the pres­i­den­tial elec­tion in Novem­ber.

"There will be a ma­jor bor­der tax on these com­pa­nies that are leav­ing," Trump said, but de­clined to of­fer more de­tails of the pro­posed bor­der tax, which would tax im­ports and cre­ate in­cen­tives for do­mes­tic pro­duc­tion.

"You've got a lot of places you can move, and I don't care, as long as it's within the United States, the bor­ders of the United States," he said.

Trump has pres­sured Ford, Gen­eral Mo­tors, Toy­ota and other com­pa­nies to bring fac­to­ries back to the United States in re­cent weeks, threat­en­ing to im­pose the bor­der tax on them if they shift pro­duc­tion to Mex­ico.

But US trade of­fi­cials have warned that such a tax would be likely to face a chal­lenge at the World Trade Or­ga­ni­za­tion and also take US com­pa­nies out of global sup­ply chains that are now vital in com­pet­ing in­ter­na­tion­ally.

"If it dis­crim­i­nates against im­ports, it will raise in­ter­na­tional trade con­cerns and, of course, have a sig­nif­i­cant im­pact on any consumer or any busi­ness that re­lies on im­ports as inputs," US Trade Rep­re­sen­ta­tive Michael Fro­man said Tues­day in an in­ter­view with Fi­nan­cial Times.

Pres­i­dent-elect Don­ald Trump speaks dur­ing a news con­fer­ence in the lobby of Trump Tower in New York, Wed­nes­day, Jan. 11, 2017. (AP Photo/Evan Vucci)

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