Trump pressures US firms to bring back manufacturing from China
U.S. President Donald Trump on Monday said his administration will provide tax credits for American companies to relocate their manufacturing facilities from China to the United States.
Trump, seeking to build support ahead of the US presidential election on November 3, vowed to create 10 million jobs in 10 months.
During a visit to Mankato, Minnesota, the Republican president said his administration would also strip federal contracts from companies that outsource their manufacturing to China.
“We will create tax credits for companies that bring jobs from China back to America,” Trump said during an hourlong speech. He also claimed the U.S. economy would bounce back strongly from the economic shock caused by the coronavirus pandemic - as long as he was re-elected.
“We will end our reliance on China, we will make our critical drugs and supplies right here in the United States,” he said, in an apparent reference to an executive order signed last month to boost production of medicines and medical equipment.
Weeks of record job losses have left the United States with unemployment rates not seen in more than a decade, with millions of Americans facing the prospect of a permanent job loss as the resurgence of the coronavirus has caused many states to reimpose restrictions.
Trump, who is trailing Democrat Joe Biden in the polls, said his tax cuts and other measures were strengthening the U.S. economy despite the pandemic.
It marks his latest attack on China, after moves that have involved tech companies TikTok, WeChat and Huawei.
The announcement came as tensions between Washington and Beijing have been escalating rapidly in recent months.
Many well-known U.S. products are made overseas for American consumers, a business strategy known as outsourcing.
America’s most valuable public company, Apple, uses a Taiwanese firm called Foxconn to make the majority of its best-selling iPhones. Foxconn has factories in both China and Taiwan.
Other iconic American brands, including Nike, also have large manufacturing plants in China as well as other parts of Asia.
Global brands have been reviewing their Chinese operations amid the coronavirus pandemic after temporary factories closures caused major supply chain disruptions.
China is often referred to as the “world’s factory” but its share of global exports has been hit by the trade dispute with the U.S. and the coronavirus pandemic.