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News » Trump vows to end outsourcing if reelected as U.S. President

Trump vows to end outsourcing if reelected as U.S. President

Trump vows to end outsourcing
Photo from Parker Michels-Boyce/ Bloomberg

WASHINGTON, D.C., UNITED STATES — Former U.S. President Donald Trump has vowed to end outsourcing if he is reelected. 

In his 2024 Republican Party platform, Trump declared his intention to “stop outsourcing and turn the United States into a manufacturing superpower.” 

This platform, set to be unveiled at the upcoming party convention, outlines 20 promises aimed at making America great again. 

Senior campaign advisors Chris LaCivita and Susie Wiles described the platform as a concise and digestible vision for every voter.

Potential impact on India’s outsourcing industry

However, this promise could significantly impact India’s multi-billion-dollar outsourcing industry, which relies heavily on its American clients.

India’s outsourcing sector, which derives about 62% of its business from the U.S., faces potential disruption. Major American companies like Ford Motors, Cisco, American Express, General Electric, and Microsoft have long relied on Indian firms for outsourcing. 

The promise to end outsourcing brings back memories of Trump’s first term, which ran from 2017 to 2021. During that time, his administration targeted the H-1B visa program, which is crucial for Indian IT professionals working in the U.S.

Historical context and comparisons

Trump’s stance on outsourcing is not unique among U.S. presidents. 

Current U.S. President Joe Biden proposed an offshoring tax penalty during his 2020 campaign, while Barack Obama frequently urged U.S. companies to bring back outsourced jobs. 

However, during Trump’s first term, concrete measures significantly affected the H-1B visa program, leading to increased denial rates and stricter regulations.

Effect on the global outsourcing industry

The Indian government and businesses are understandably concerned about Trump’s promise. 

However, Trump’s promise has broader implications beyond India. Ending outsourcing could lead to higher costs for U.S. companies and consumers, potentially reigniting inflation. Critics argue that such policies could disrupt the global supply chain and economic stability.

As the 2024 election approaches, Trump’s promise to end outsourcing is poised to be a significant talking point, with far-reaching consequences for both the U.S. and global economies.

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