Politics Tariffs/Trade Wars

[Mark Sman]

Yeah, I am OK with tariffs adding up to the total highest take that a country charges to sell anything. Tariff, VAT, fees, graft, grift, all of it.

Whack on another one or two percent, maybe, for the usual suspects who have hidden corruption as an accepted part of their system.

The Trump admins math is not accurate, but the other side is slinging some BS as well.

 

[PEMM]

Tariff, VAT, fees, graft, grift, all of it.

I still don't understand your guys problem with VAT.

 

[Telmar]

Understanding and finding VAT rates VAT is charged on goods that are entering the EU for the first time as an import, from another non-EU country, often referred to as a ‘third country’. VAT rates vary depending on the types of goods involved and the rules of the member state that you are looking to import into. Under the VAT Directive, member states have to apply a coordinated, standard rate of 15% but they are then free to set the final rate above this.

VAT applies to transactions between states...

VAT is not a tariff.

A company in Italy makes something and is willing to sell it at 100 and a French company makes a comparable product also selling at 100: the price in Slovakia will be 123. 23 goes to the Slovak tax office.

It is not that hard really.

EDIT: An American company coming with the product and willing to sell it for 110 after all the freight costs would see its product priced 110*1,23.

Fair.

Instead of tariffs it would have been smart to look at norms as a barrier to free trade more than tariffs. But tariffs are easy, especially when all the numbers are made up.

 

[PEMM]

It is not that hard really.

In essence they seem to be demanding some kind of reverse tariff, where VAT applies to our own products, but not to products we imported from them, giving their products unfair advantage over our own products.

Crazy.

In any case, I don't suggest we respond in kind, as tariffs would hit our own companies. We might even become a hub shipping American goods abroad to countries that have placed tariff on the US. They ship us the parts, we assemle, stick "Made in EU" sticker and ship and get a chunk of profits. If we place very high tariffs, we can't do that.

Further reading if VAT confuses: https://taxpolicy.org.uk/2025/04/02/no-vat-isnt-a-tariff-but-the-us-would-benefit-from-adopting-it/

 

[Telmar]

In essence they seem to be demanding some kind of reverse tariff, where VAT applies to our own products, but not to products we imported from them, giving their products unfair advantage over our own products.

Crazy.

I think there is a general misunderstanding of how these things work.

And tariffs are not the main essence of protectionism and anyone doing business knows that: the problem are norms and regulations that vary from country to country, making the part of production you make for a part of the world more expensive because complexity is expensive: more expensive than paying a 5% tariff on entry to a market.

EDIT some examples from the European car industry before applying common norms:

- France: headlights must be yellow. Elsewhere in Europe yellow headlights are not legal
- Italy: side blinkers are mandatory. Illegal in France
- Slovakia: mudflats mandatory behind all wheels.

For the USA, headlights needed to be seprate: it was illegal to have them in one lighting block. And bumpers needed to be special...

Many more...

This has changed in the EU of course because even if the EU overregulates, the cost of having your production simplified and standardized creates competitivity.

 

[haze99]

US Commerce Secretary Howard Lutnick reveals 50 nations reached out to negotiate tariffs, warns ‘there is no postponing’

Howard Lutnick said the calls from foreign officials prove that “these countries know that they’ve been ripping us off,” suggesting there was no room for negotiations.

nypost.com

 

[Mark Sman]

For the USA, headlights needed to be seprate: it was illegal to have them in one lighting block. And bumpers needed to be special...

I think the US dropped the headlight thing. Mostly because of modern LED headlights. (Finally)

The bumper thing, still a thing as far as I know. At one point the US NHTSA was far ahead of international standards on bumpers. Today, not so much.

 

[Mike1976]

China isn't impressed.

China says it will 'fight to the end' after Trump threatens to impose still more tariffs

China, the world’s second-largest economy, has announced retaliatory tariffs and the ministry hinted in its latest statement that more may be coming.

apnews.com

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[Hiryu2.0]

EU-CHINA

 

[Chazman]

China isn't impressed.

China says it will 'fight to the end' after Trump threatens to impose still more tariffs

China, the world’s second-largest economy, has announced retaliatory tariffs and the ministry hinted in its latest statement that more may be coming.

apnews.com

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This will be interesting.

 

[haze99]

Taiwan Offers Zero Tariffs and More Investment in U.S.

Taiwanese President William Lai Ching-te proposed zero tariffs, lower trade barriers, and more investment in the United States in response to Trump's tariffs.

www.breitbart.com

 

[Telmar]

Is the MAGA team cracking under pressure? Elon Musk calls Peter Navarro, Commerce secretary a "moron" and "dumber than a sack of bricks"

Musk spars with White House trade advisor Peter Navarro: ‘Dumber than a sack of bricks’

Elon Musk sparred on social media Tuesday with White House Senior Counselor Peter Navarro, after Navarro said in an interview Monday that Tesla was a car “assembler" rather than a manufacturer.

www.foxnews.com

 

[primer]

Parts made in China no doubt, made in USA is not like it was before Elons time.

 

[madmax17]

Moron. Usa will always have a trade deficit, Americans are consumers they like to buy stuff, cheap crap, European God-like products, and they can't build a normal fancy electric car for Eu needs (thanks to Musk entering maga politics and boycott).

China can manufacture anything cheaper and faster then the west, cost is a big factor when people choose what to buy. Usa doesn't have much, some energy and It services and military equipment (another problem here with Dumpf destroying any alliance with a tweet and retarded interview, threats of annexation).

What a shitshow, Dumpf made the situation x1000 worse, Usa will not have a trade surplus with anyone, China making deals with Japan and Korea, Eu with India and Canada (and maybe China), they are going around Maga bullshit moving without Usa.

 

[Chazman]

104% tariff on China starts at midnight.

 

[primer]

Not really. Automation is taking over buddy. Hyundai setting up factories etc in US as direct result of policy. They aren't doing it out of generosity. They can make profit duh.
EU slapped out of coma begins to re-arm..decade after ZZ invaded Ukraine. Only due to your Dumpf.
Canada's not that free trade as you think. C'mon read their tariff list before posting. UK Starmer says tariffs are ok. The world is changing at a fast pace in just a few weeks.
I really have not seen this much change in my 60 years. But thats just Dumpf right. He caused that as you alude to but think its all wrong.
Have another coffee or get out more?

Must re-iterate that even Bernie the rightful democrat runner if they based it on proper electoral procedure says the tariffs are good for manufacturing. AOC when she stops pouting on facebook is the same.

It's rubber to the road now.

 

[Chazman]

The Yuan is currently in free fall.


Less than 7 hours before 104% tariffs. Tick Tock....

 

[Chazman]

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[Chazman]

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[Hiryu2.0]

EU slaps tariffs on US trucks, cigarettes and ice cream to target Trump’s red states

European trade officials sure know how to have fun.

www.politico.eu