Germany Threatens Legal Action if US Hikes Import Tax
Donald Trump’s proposal to tax imports may lead to litigation at the World Trade Organization, according to German Economy Minister Brigitte Zypries.
The threat comes ahead of the first meeting of between Chancellor Angela Merkel and the US President on Friday.
rump has warned the US would impose a 35 percent border tax on BMW vehicles, produced at a new plant in Mexico.
“I'm betting partly on reason and partly on the courts” to stop a damaging trade war, said Zypries in an interview with Deutschlandfunk public radio, Friday.
“The other option is that we file a suit against him at the WTO - there are procedures laid out there because in the WTO agreements it is clearly laid out that you're not allowed to take more than 2.5 percent taxes on imports of cars,” the minister said.
The US became Germany's biggest export market last year, selling €107 billion of goods while importing just €58 billion worth. Germany’s trade surplus has been a source of tension between Washington and Berlin.
Read more: https://www.rt.com/business/381151-germany-us-litigation-taxes-imports/