"It is clearly laid out that you're not allowed to take more than 2.5% taxes on imports of cars."
German Economy Minister Brigitte Zypries said on Deutschlandfunk radio on Friday that Germany could file a suit against U.S. President Donald Trump over a proposed border tax.
Trump has warned that the United States will impose a border tax of 35% on cars that German carmaker BMW bmwyy plans to build at a new plant in Mexico and export to the U.S. 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% taxes on imports of cars,” Zypries said.