Analyzing How President Trump's Border Tax Would Work

By Dr. Sonu Varghese via our partners at

With President Trump’s administration taking office, financial market participants are eyeing what policies he’ll prioritize and implement.

Perhaps the most anticipated of all is comprehensive tax reform, a big piece of which involves lowering the corporate tax rate to 20%, as specified in Congressional Republicans’ policy initiative ‘A Better Way‘.

While the blueprint includes significant overhauls across the tax code in addition to lowering the corporate tax rate, a ‘border adjustment’ tax has stood out recently amongst its various provisions. The provision aims to promote exports while taxing imports, which would align with President Trump’s stated priority of revitalizing the U.S. manufacturing sector.

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