US President Donald Trump is determined to impose tariff of up to 45 per cent on goods from China, slash US corporate tax rate to 15 per cent, as against the earlier 35 per cent, and reinvigorate the workforce by supporting the manufacturing sector and imposing stricter immigration rules. These trade policy shifts could have far-reaching implications in international business, especially the textile industry.
Alibaba executive chairman Jack Ma during his speech at the 2017 World Economic Forum Annual Meeting in Davos, 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 see the bells pealing joyfully as it would give many ailing companies a big bottom-line boost, but most fashion retailers largely sell goods made abroad and are subject to tariffs or trade agreements, however these agreements could now be renegotiated. It is felt that companies based in China will face the battering most.