Donald Trump is facing frosty trade talks with Angela Merkel tomorrow when the German Chancellor visits Washington.

There have been rumblings of disquiet between the two countries with the Trump administration accusing the European country of keeping the euro artificially low in order to gain a competitive advantage for its exports.

To compound the issue Congress is considering a new company tax which would make imports more expensive and exports tax-free. This would help the US address its trade imbalance with Germany of over $50 billion.

They say Germany, enjoying the benefits from a trade surplus, has seemingly stuck its head in the sand and failed to address US concerns.

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