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Ofer Schacht's avatar

Doesn't the US have sales tax on a state level? Based on their warped logic this would need to be considered as well, no?

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Piotr Markowski's avatar

It is so basic concept you learn at the initial economic course at the university. I read this and cannot comprehend how its possible this is happening….is this ignorance of strategy to play dumb….

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PML's Macro Focus's avatar

On car tariffs, it's worth remembering that the US has a 25% "chicken tax" (so-called after LBJ imposed it in 1964 in retaliation for European restrictions on imports of US chickens) on imports of light trucks and SUVs. US consumers pay higher prices and have fewer choices than otherwise, but US manufacturers love the boost it gives to light truck/SUV sales and profits.

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Max Nussbaumer's avatar

Cars and other imports are generally processed through importers who don't pay VAT (it's a pass through tax). The importers or resellers then charge VAT to the consumers. So technically, it's a purely domestic affair and US exporters don't face any obstacles from VAT. They wouldn't even know which VAT affects the end customer.

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Thomas L. Hutcheson's avatar

The whole "tariffs" idea is silly but mirabile dictu if Europe reduced its tariffs to US levels whenever they are higher, it woud be a win-win for both.

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