Think Tank: War-gaming Seen as an Antidote to Trump Trade Policy Uncertainty

Think Tank: War-gaming Seen as an Antidote to Trump Trade Policy Uncertainty Jim Singer Business abhors uncertainty. But uncertainty has been the organizing principle of the Trump administration's approach to global trade policy, leaving every American business with an offshore supply chain scrambling for clarity and options. The financial survival of thousands of retailers is dependent on two factors: which set of conditions emerges, and how effectively they react. In a trade environment that threatens to penalize large U.S. importers, especially retailers in certain categories such as electronics and apparel, the question is not how to avoid risk, but rather how to be better prepared than your competitors to respond to whatever policy scenario emerges once the rhetoric and "tweet storm" settles. Here, we focus on three plausible trade scenarios: the imposition of a Border Adjustment Tax (BAT); what happens if NAFTA is dismantled, and the possibility of trade conflict with China. BAT A Border Adjustment Tax is included in the Paul Ryan-Kevin Brady plan, a Congressional blueprint for corporate tax reform advocating a reduction of the corporate tax rate from today's 35 percent to 20 percent. Under a BAT, companies would be taxed on revenues generated in the United States less cost of goods sold, provided, of course, those goods were not imported, in which case their costs Follow WWD on Twitter or become a fan on Facebook. Read More... Fashion 3