America’s sweeping tax overhaul continues to send waves across the Atlantic. The EU and its biggest economies have sounded alarm bells over elements of the legislation, which slashes taxes for corporations and the wealthy while offering some temporary relief to others.

It is feared European businesses could be kicked.

“We have highlighted those concerns in our letter which I signed together with several other members of the college to relevant US authorities, to ensure that tax reform does not lead to arrangements which would be de-facto discriminatory against European companies,” said European Commission Vice-President Valdis Dombrovskis.

Germany says it will analyse the final tax bill closely, looking for possible spillover effects on its companies.

One Brussels-based commentator says the implications of what is happening in the US are serious.

“This is the start of a very, very worrisome tax competition and some are starting to talk about a tax war. It does undermine international cooperation. So a globalisation is starting to turn into competition instead of cooperation between governments and that’s very worrisome.”

The US bill is expected to take effect early next year – and the EU will be watching its introduction with an eager eye.