The U.S. economy is on the verge of experiencing the most dramatic tax cut since the 1986 tax reform. The tax reform bill has passed Congress and President Trump has signed it into law, most of which will take effect from the start of 2018. The tax reform will not just impact the domestic economy of the United States. In its current form, it would also have substantial consequences on the global economy. Particularly a reduction in corporate tax rate could increase flows of global investment into the U.S. It could also contribute to stronger dollars, worsening the trade balance for the U.S. with its trading partners including Korea. It could, in turn, induce more protectionism.