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).