US GOP Plans 15% Corporate Tax to Boost Domestic Manufacturing

India and the United States are engaged in complex bilateral trade negotiations focused on ensuring mutual benefits, including India's demand for the US to lower duties on labor-intensive sectors like textiles and leather, while India is expected to reduce tariffs on various American goods. The US, under President Trump, is pursuing a dual strategy of imposing tariffs to retaliate against foreign trade discrimination and proposing a significant corporate tax cut from 21% to 15% to incentivize domestic production and encourage companies to reshore operations. This tax reduction aims to create a fair competitive advantage for American companies and could be funded by increased tariff revenues from the existing 10% tariff rate on imports from all nations. Additionally, House Republicans have proposed legislation to eliminate duty-free imports on low-value foreign goods, expanding on Trump's executive order targeting Chinese imports. These measures reflect a broader US policy to level the playing field by imposing higher taxes on foreign-made products while lowering taxes on domestic manufacturing, thereby supporting American industry and addressing trade imbalances.