There is a proposal on the Congressional table to levy a retaliatory tariff on U.S. imports from VAT/GST countries. The tariff is based on the illusion that the VAT zero-rate on exports is in effect a subsidy on domestic exporters. The rate of the proposed tariff is equal to the VAT/GST rate in the country of origin of the imported goods.
Bloomberg writes as a part of their report on tax reform:
“Though the blueprint was seen as a departure from previous tax proposals, some lobbyists are concerned that the border adjustability provision—to tax imports and exempt exports—that funds much of the lower tax rates in the plan isn’t likely to comply with World Trade Organization rules, which allow border adjustment provisions for value-added tax systems, but not for income tax regimes.”
And obviously also see my earlier posts and comments on this proposal.