President Donald Trump has vowed to impose tariff of up to 45
per cent on goods from China, slash US corporate tax rate to 15 from 35 per
cent and reshape the workforce by bolstering manufacturing sector and imposing
stricter immigration rules. These dramatic shifts could have far-reaching and
unforeseeable consequences in the global order.
Alibaba executive chairman Jack Ma during his speech at the
2017 World Economic Forum Annual Meeting in Davos, Switzerland recently
had urged people to give Trump a chance. “Give President Donald Trump some
time. He has an open mind.”
A lower corporate tax
rate would certainly be welcome and could give many ailing companies a big
bottom-line boost, but most fashion retailers primarily sell goods made
oversees and are subject to tariffs or trade agreements (that could now be
renegotiated). The picture is more complex, particularly for companies based in
China or those with businesses that depend on warm relations between Beijing
and Washington (as Trump moves to bring the US closer to Russia).
Source: BBC News Monday, 05 February 2018