US tax reform promises big income boost for German carmakers

German automakers Daimler and BMW said on Friday that a new radical US tax reform giving major cuts to companies would add hundreds of millions of euros to their 2017 profits.

The controversial tax revision signed Friday by billionaire president Donald Trump will reduce the tax rate of US corporations from 35% to 21%.

As a result, Daimler predicted that its net profit would increase by about 1.7 billion euros ($ 2 billion) this year.

"The reduction of the federal corporate tax rate … gives rise to a tax benefit that increases the group's net income for the year 2017 of about 1.7 billion "euros," announced the company in a statement.

BMW also said it was expecting tax changes to have a "positive impact" on its 2017 net profit, propelling it from $ 950 million to $ 1.55 billion. euros.

Trump celebrated this week his first major legislative victory since he took office a year ago while Congress voted the $ 1.5 trillion reform, which should affect every aspect of l & # 39; economy.

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