A massive threat for Europe if the US will try to include Value-Added Tax (VAT) in its calculation of reciprocal tariffs to be applied to the EU and the UK that uses the same form of indirect taxation
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….
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.
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.
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.
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?
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….
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.
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.
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.