US tax change set to widen gap between firms and their suppliers

Seattle

A US tax overhaul proposed by Republican leaders in Congress would deepen divisions between big manufacturers like Boeing Co and the thousands of smaller companies that supply them, according to suppliers and tax and trade experts.

US carmakers and other manufacturers that rely on imported components also would be affected by the proposals, which would tax imports at a 20 per cent rate, and could split these sectors into winners and losers.