Wipro has labeled the US President Donald Trump, as a potential threat in its annual filing with the US Securities and Exchange Commission.
A company’s risk factors are those that could hurt its operations, revenue and profit. Further, risk factors include geopolitical instability and terrorist attacks.
“The Significant developments stemming from the recent US Presidential Election could have a material adverse effect on our business. On November 8, 2016, Mr. Donald J. Trump was elected as the next President of the United States. As a candidate, President Trump and his administration expressed support for the policies impacting the existing trade agreements, like North America Free Trade Agreement (Nafta,) and proposed trade agreements, and promoting greater restrictions on free trade generally and significant increases on tariffs on goods imported into the United States,” Wipro said in its filing.
The IT companies have been calling the risks of protectionism and potential issues related to visas for years. Wipro has separate risk factors detailing on how it could be affected by restrictive changes to immigration laws in the UK, US, Australia and Singapore.
President, Trump’s fierce protectionist rhetoric is a cause of great concern for Indian IT companies. Since his election, IT companies have all said that they will increase their hiring and will decrease their dependence on the work visa.
