Trump's 'reciprocal tax' keeps analysts guessing

New York

AMERICANS might want to brace themselves for political arguments about the "reciprocal tax", the "matching tax" or the "mirror tax".

But if President Donald Trump has anything to say about it, they won't be hearing much more about the "border-adjusted tax" (BAT).

Mr Trump made clear last week that he's not fond of that name - nor the controversy that has sprung up around the BAT, a key feature of House Speaker Paul Ryan's plan to rewrite the US tax code.

Retailers, carmakers and oil refiners that rely on imported materials have all complained that Mr Ryan's proposal to tax US companies' domestic sales and imports while exempting their exports would mean higher prices for consumer goods.

"When you say I'm going to charge a 10 per cent or a 20 per cent border tax, everyone goes crazy, because they like free trade," Mr Trump said during an interview aired by Fox Business Network on Wednesday. He added later: "But when you say 'reciprocal tax', nobody can get angry."…