Politics Tariffs/Trade Wars

[PEMM]

Of course they are not subject to tariff, as tariff is collected at the border when importing.

VAT You pay when importing or buying local product from store. Not collecting VAT from import would make it cheaper than local producers. But this is discussed quite a few times already...

In any case I know way too little about NZ to comment on it's problems.

 

[primer]

The tariff component is in the cost to the consumer at no matter what discount the retailer may have received.
If Trump applies 10% VAT or 10% tariff the end result is precisely the same for the revenue for govt generated by the imported item.
yes or no?
May actually add that Indian nurses are very good. Things are on a triage level though.

 

[muck]

How is that indifferent for tariff?
Same feature as local competitors are subject to the very same levy.



Performs the same ultimate function in the end and both are applied and paid at the border on the exact same invoice and goes to the same place..

You might as well argue then that a fine is no different from a tariff or a tax.

VAT is paid on all goods traded inside an economy.
Tariffs are only collected from the importer of a good upon his goods entering the country.

If I buy a bottle of locally produced wine in the store around the corner, I pay VAT. I don't pay tariffs.

If you buy a bottle of German wine in your nearest liquor store, New Zealand import tariffs have already been collected from the importer. And obviously, the importer will try to retrieve their costs from you.

Since VAT is collected from everyone, whether foreign or local, there can be no talk of undue preference.

 

[PEMM]

Obviously imported items are tariffed. That is the point, to discourage importing.

Let's say a local producer produces a wooden chair worth 100 money and sells it to customer A.
Customer B imports a wooden chair worth 100.

With tariff of 10% (and not VAT) customer A does not pay, but the customer B pays 10 as tax. Giving the local producer an advantage.

With VAT of 10% (and no tariff) both customers pay 10 as tax. No competitive advantage for the local producer.
If customer B did not have to pay VAT upon import, he would get the chair 10 cheaper than the person buying from local producer.

VAT is not considered a tariff because it behaves differently from a tariff. That's all there is to this, really.

 

[primer]

Do not worry I know how the system works. I do the books. It is the end benefit that we should look at. Not at all trying to be obfuscative.

Applying GST/Vat to imports was not an obligation. USA at federal level has non.
In comparison then does the same item imported into EU cost more in the end than USA due to VAT?

 

[PEMM]

Of course it costs more. As does the local product.

Which is different from setting a tariff for imports.

Edit: in any case, I must reload my batteries. If someone told me year ago that I would be defending taxes (that are way too high 25.5!!!) from slander at 1am, I would've felt sad for myself. Aren't we the victims here, for not being able to buy as much stuff as the Americans, not the companies.

 

[HorniePonie]

Do not worry I know how the system works. I do the books. It is the end benefit that we should look at. Not at all trying to be obfuscative.

Applying GST/Vat to imports was not an obligation. USA at federal level has non.
In comparison then does the same item imported into EU cost more in the end than USA due to VAT?

If the US collects a 25% tariff from the EU imports and the EU collects 25% VAT from all products foreign and domestic, is the playing field level for exporting companies from the US and the EU?

 

[primer]

Yes because in the end the same amount of revenue tax is applied to the cost. If you exclude the VAT then the USA import costs less.
As trade envoys if the US applies the same 25% amount as VAT you are ok?

 

[Chazman]

Yes because in the end the same amount of revenue tax is applied to the cost. If you exclude the VAT then the USA import costs less.
As trade envoys if the US called the tariff VAT you are ok?

Excellent idea. They are not tariffs but VAT!

 

[primer]

Its just another tax dreamt up to fill the books after an overspend. Supposedly it also improves accounting, well we have AI now and all kinds of accounting software but still have it. Suspiciously my accountant was very happy as he texted me from the ski slope in Canada.

 

[HorniePonie]

Yes because in the end the same amount of revenue tax is applied to the cost. If you exclude the VAT then the USA import costs less.
As trade envoys if the US applies the same 25% amount as VAT you are ok?

If a US company sells a product to a US customer the EU company has a 25% tariff disadvantage in competition.
If a US or an EU company sells a product to an EU customer, neither has an advantage over the other as the customer pays 25% in either case.

 

[primer]

The US tax payer was already paying as much domestic tax as the govt can get out of them without wrecking the economy. Same here and we voted in a sober govt.
How much of the pie for EU is VAT, company and personal tax is your business.
If create federal VAT to balance it cut company tax. Or go broke in this hypothetical world.
Trump boasted with all the tariff and VAT rebalancing coming in he could have no personal or company tax. Underline boast as this is currently negotiating time.
He claims VAT is a tariff or even more worse than a tariff though am not sure why its worse.

 

[Junglejim]

If you guys think India will be the alternative to China, you guys are not seeing China's weapons against that, aka Pakistan. That will be a big disruptor to any economic activity between India and the world.

And to the ones, talking about South America, look at Brazil's moves recently with China and Russia.

 

[primer]

Wasn't that long ago Mandarin was getting promoted here and snuggling up to Chinese investment was a public discussion for infrastucture..the belt road era. That's subsided and looking around you'd think were are an Indian colony.

Luxon calls for an ‘all of New Zealand’ investment in India relationship

JJ if you were a US CEO would you be ordering out of China in the face of tariffs and the clear out for them politcial climate.

 

[Chazman]

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

 

[Junglejim]

Wasn't that long ago Mandarin was getting promoted here and snuggling up to Chinese investment was a public discussion for infrastucture..the belt road era. That's subsided and looking around you'd think were are an Indian colony.

Luxon calls for an ‘all of New Zealand’ investment in India relationship

JJ if you were a US CEO would you be ordering out of China in the face of tariffs and the clear out for them politcial climate.

As a CEO? I would go with whatever makes my company more money.

 

[PEMM]

Yes because in the end the same amount of revenue tax is applied to the cost. If you exclude the VAT then the USA import costs less.
As trade envoys if the US applies the same 25% amount as VAT you are ok?

Yes as then our comparable product would not be at an disadvantage with price when compared to their local product.

@Chazman You can call them Harry and Pete too, as long as you decide which is which. But it makes discussion a bit difficult if everyone uses their own terms.

 

[Hiryu2.0]

???????

https://www.marketwatch.com/story/trumps-china-tariffs-arent-temporary-negotiating-tools-theyre-divorce-papers-c798c936

 

[Chazman]

Cheater, cheater, pumpkin eater......

To view this content we will need your consent to set third party cookies.
For more detailed information, see our cookies page.

Accept third party cookies

 

[Fluff]

Obviously imported items are tariffed. That is the point, to discourage importing.

Let's say a local producer produces a wooden chair worth 100 money and sells it to customer A.
Customer B imports a wooden chair worth 100.

With tariff of 10% (and not VAT) customer A does not pay, but the customer B pays 10 as tax. Giving the local producer an advantage.

With VAT of 10% (and no tariff) both customers pay 10 as tax. No competitive advantage for the local producer.
If customer B did not have to pay VAT upon import, he would get the chair 10 cheaper than the person buying from local producer.

VAT is not considered a tariff because it behaves differently from a tariff. That's all there is to this, really.

If tariffs add 10% to the imported option, in an otherwise equal market, the local guy can increase his prices by 9%……