We could file suit against Trump at WTO over border tax, German minister says

Trump has warned that the United States will impose a border tax of 35% on cars that German carmaker BMW plans to build at a new plant in Mexico and export to the US market.

German Economy Minister Brigitte Zypries said on Deutschlandfunk radio on Friday that Germany could file a suit against US President Donald Trump over a proposed border tax.

German economy minister Brigitte Zypries speaks to media outside Bundestag in Berlin on March 6, 2017.(AFP Photo)

Trump has warned that the United States will impose a border tax of 35% on cars that German carmaker BMW plans to build at a new plant in Mexico and export to the US market.

Asked how Germany would react to the proposed tax, Zypries said it was very difficult because it was possible to adjust such a tax system, but it would then be necessary to change it around the world and that would not be possible from one day to the next.

“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,” Zypries said.