International Macroeconomics
Will Paul Ryan’s Tax Reform Set Off a Trade War?
Tax Policy

Will Paul Ryan’s Tax Reform Set Off a Trade War?

The Issue:

Many international economists and legal scholars believe that the Border Adjustment Tax at the core of the corporate tax reform plan pushed by House Speaker Paul Ryan violates World Trade Organization (WTO) rules.  If the U.S. implements this plan, America’s trading partners can – and probably will – retaliate. Recent analysis suggests this retaliation could cost U.S. exporters as much as $385 billion annually in lost export revenue.