2017 brought us yet another new year of business and in the good old USA, a brand new President. Many might recall that Donald Trump ran on a platform that called out a distaste for Chinese made goods, abolishing NAFTA, bringing back jobs to the US, and of course the building of a wall between the USA and Mexico.
What we do know just a few months into his Presidency is that he clearly did not agree with the Trade Agreement that Barack Obama left in place for completion,
It is clear that this new administration will try to push forward with two points of business:
- Lowering the Corporate Tax Rate in the USA from 35% to 20%
- Placing a BAT (Border Adjustment Tax) Tax on all goods purchased abroad and re-sold in the USA (Proposed 20% Tax)
What does this mean for large corporations, small business, and in the end the consumer? Time Magazine wrote a strong piece on this topic and followed with a great video explaining these two points above.
What will be interesting is to watch if both the President and the Legislature can work together to make these changes happen in the coming year. I think up to today, most companies have began looking at local production with equal or better quality, and faster supply chain fulfillment. One can only hope those executives that are in the dark on this topic will begin to re-think production in the coming months, even if it means moving part of their production back to the good old USA.