Border-adjustment tax may spark higher tariffs - Der Spiegel

According to Der Spiegel magazine, based on the documents for Merkel’s upcoming meeting with Trump, the German government is reviewing its responses to a border-adjustment tax, which would only tax U.S. corporations’ imports and not their exports. 

Key highlights (via Bloomberg)

• German Chancellor will meet U.S. President on Tuesday
• Merkel will warn U.S. President Donald Trump that a proposed tax overhaul could spark retaliatory measures, including higher tariffs for American companies
• Merkel will label the measure a “protective tariff” and will say that it violates World Trade Organization rules
• Responses from Europe’s largest economy could include incrementally higher duties on imports from America
• Germany could also lower corporate taxes and social contributions, making itself more attractive to international companies