The US government is taking another step in the trade war against China. American companies that move their production from China to the US can count on a tax credit. Companies that have the federal government as customers lose them if they have their products made in China.
President Trump announced the measures at an election rally in the state of Minnesota. “We are ending our dependence on China, we want essential medicines and supplies made here in the US.”
He told his audience that the measures will create 10 million jobs in ten months. He said nothing about the size of the rebate, nor did he provide details of other tax reforms he announced.
Restore economy
Trump claims the U.S. economy will quickly recover from the corona crisis if he is reelected. He pointed out to his supporters that retail sales are improving, but those figures were lower than expected in July. Consumers postpone the purchase of new cars, among other things.
Economists expect that there will be no recovery in the coming months. The US has nearly 5.5 million corona infections and more than 170,000 corona deaths and the outbreak has still not been brought under control. The government is also cutting back on unemployment benefits.
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