Proposed US tax might upset Asian exports: Report

The US market commands about 30% of India's total exports in the textile and apparel sector

Donald Trump recently became America's president after promising to reduce the country’s trade deficit and increase jobs. A 'Border Adjustment Tax' (BAT), which taxes imports and incentivises outbound trade has gained credence among the nation's lawmakers as a measure to this end.

A report by financial services firm Credit Suisse suggests this would have grave implications for Asian economies which have heavily depended on exports to fuel development.

Under a BAT, companies that import goods for sale in the United States would be taxed on those imports and wouldn’t be able to write off the cost of the imports as