The overhaul of America's tax code is being met with consternation abroad, as foreign leaders face growing pressure to slash their own tax rates and warn that key provisions in the new U.S. law could violate international treaties.
Europe's most powerful finance ministers have alerted Treasury Secretary Steven Mnuchin that they have "significant concerns" with the law and fear it could lead to distortions in trade and investment. In Australia, Treasurer Scott Morrison estimates that the reduction in the U.S. corporate tax rate could dampen his country's economic growth by 1 percent. Canada's finance minister acknowledged Wednesday that America's move is forcing officials to take a hard look at their own tax laws.
"We need to do our homework," Finance Minister Bill Morneau told reporters at the World Economic Forum in Switzerland. "We are doing the analysis to look at ensuring that our situation for corporations continues to be competitive."