In the latest warning from the White House that it is set to unleash trade policy that will be in sharp conflict with generally accepted trade norms, most likely a reference to some form of Border Adjustment Tax, the Trump administration has warned that the U.S. isn’t and won’t bound by decisions made at the World Trade Organization, in outlining a new trade agenda that “promises to root out unfair practices by foreign countries” and to escalate what are already simmering trade conflicts. Continue reading
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