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Donald Trump threatens to pull U.S. out of WTO

Trump was discussing his plan to impose taxes or tariffs on U.S. companies that move manufacturing abroad
Donald Trump

The United States Republican Presidential nominee Donald Trump on Sunday considered to pull the US out of the World Trade Organisation (WTO) if his plan to impose penalties on companies that move American production offshore is rejected.

Trump was discussing his plan to impose taxes or tariffs on U.S. companies that move manufacturing abroad in an interview on Sunday with NBC’s “Meet the Press.”

If elected President, I would impose a tax on US companies that shift production overseas then sell the products back to the US, Xinhua news agency quoted Trump as saying.

“If they are going to fire all their people, move their plant to Mexico, build air conditioners and think they are going to sell those air conditioners to the US, there is going to be a tax,” Trump told NBC news.

The tax rate could be 15 per cent, 25 per cent or 35 per cent, and could be different for different companies, he added.

When told that such tax would not get through the WTO, Trump said he would then renegotiate “or we are going to pull out.”

“These trade deals are a disaster, Chuck. WTO is a disaster,” Trump said.

Trump reiterated his support to Britain for its exit from the Europe Union, which he said he foresaw before it happened.

Asked about his previous remarks that the US protection of other Nato members should be conditional on their financial contribution, Trump firmly stood by his position.

“We have Nato and we have many countries that are not paying for what they are supposed to be paying, which is already too little but they are not paying anyway,” he noted.

The countries Trump mentioned which have to pay for the US protection included Japan, Germany, South Korea and Saudi Arabia.

-IANS

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