Merkel to Warn Trump That U.S. Tax Changes May Spark Retaliation
- German Chancellor will meet U.S. President on Tuesday
- Spiegel reports border-adjustment tax may spark higher tariffs
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German Chancellor Angela Merkel will warn U.S. President Donald Trump that a proposed tax overhaul could spark retaliatory measures, including higher tariffs for American companies, according to Der Spiegel magazine.
The German government is reviewing its responses to a border-adjustment tax, which would only tax U.S. corporations’ imports and not their exports. Documents for Merkel’s upcoming meeting with Trump cited by Spiegel label the measure a “protective tariff” and say it violates World Trade Organization rules.