“President Donald Trump pledged to end U.S. reliance on China and bring back 1 million manufacturing jobs in his second term. He recently proposed providing tax credits and allowing “100 percent expensing deductions for essential industries like pharmaceuticals and robotics” to incentivize companies to produce in the United States.”
Add in the effect of the second half of the tariffs being implemented, and that giant sucking sound will be heard around the world.
100% expensing means that companies will get to invest the money they would otherwise pay in taxes, into their business. It is potent.
The second term would likely see more movement than the first. The difficult spadework is done, the earlier incentives will continue to work as additional new ones are added, and Global business opinions have shifted radically toward diversifying out of China.
***The second term would likely see more movement than the first. The difficult spadework is done, the earlier incentives will continue to work as additional new ones are added, and Global business opinions have shifted radically toward diversifying out of China.***
I agree. My husband has been working in supply chain logistics for almost 30 years. He has many contacts all around the country, and indeed around the world, too. Companies have been trying to expand their operations so that as soon as possible, they can leave China for good. SARS-CoV-2 has amplified that desire to get out of there.