President Trump signed the Tax Cuts and Jobs Act into Law on Dec 22 last year. The tax reform reduced top corporate tax rate from 35% to 21% in 2018. This brings US taxes from the highest in the G20 nations to just below the average in the EU, which will undoubtedly stimulate earnings growth and investment activities. The reduction of tax burden will give corporates more flexibility to deal with their cash, such as increasing dividends, buybacks or attracting talents. Enhanced competitiveness of the US market means huge opportunities for French businesses.

Tax rate in Asia on average is lower than developed markets. After tax cut, US will rank right behind Hong Kong and Singapore and before China and India. This will give corporates more headroom to invest and research, and delivering more back to investors.