Caption: German Finance Minister Wolfgang Schäuble (Sean Gallup/Getty Images)
If America unleashes a trade war starting with BMW, Germany is prepared to fight back.
Senior German politicians have threatened to unleash a trade war on the United States if President Donald Trump follows through his threats to German industry.
President Donald Trump famously threatened to put a 35 percent tax on the German car manufacturer BMW in an interview published by the Times of London and Bild on January 15. German politicians were quick to respond. The next day, German public broadcaster ZDF asked German Finance Minister Wolfgang Schäuble if the world is entering a time of more protectionism. Schäuble said he hoped not but also pointed out one way Germany could hit back.
“I also want to point out that currently American companies don’t have to tax their gains which they make outside of the U.S.,” he said. “That means that hundreds of billions of untaxed gains, of great American companies, rest in a tax oasis” (Trumpet translation throughout). Continue reading