3 ms·

Maybe the fact that EU has VAT? The final consumer price might be the same in US and EU but manufacturer can charge US retailers more because the sales tax is s

Maybe the fact that EU has VAT? The final consumer price might be the same in US and EU but manufacturer can charge US retailers more because the sales tax is small compared to VAT.

TheOtherHobbes 6y ago
I'm curious about relative tariffs. If I buy an expensive custom modular synthesizer from the US, I'm going to get hit with import duties as well as VAT. As a business owner I can claim back the VAT, but the import duties are a non-trivial and non-recoverable extra. If buy a synthesizer from Thomann in the EU, I can also claim back the VAT. And there are no import duties - at least until January 2021 in the UK. So the final cost for a UK business buyer is 20% less than the nominal price. Does the US charge import tariffs on these items? I have no idea. But if it does, that would explain some of the differences. And it usually works the other way. The standard price in pounds for US tech sold in the UK is 1:1 with the US dollar price. The base iPhone 12 Pro Max is $1099 in the US. In the UK it's £1099, which is more than $1400. Even without VAT it's more than $1200. In Spain it's €1259, which is closer to $1500.
- rahimnathwani 6y ago
  Don't forget state+city sales tax. In San Francisco that adds 8.5%.
- Scoundreller 6y ago
  That US$1099 in the US is usually increased by 5-8% for sales tax. https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_Stat... Duties are another funny thing. At least in Canada, bike stuff from China has variable duties: > Importing a complete, assembled bicycle will cost you 13 per cent in duty. If you're just bringing the frame in, that's a five per cent tariff, and if you're importing complete wheels, there's a 6.5 per cent tariff. So, if you import tires and rims separately (even in the same package), there's no tariff! Frame + other parts, and you only pay on the frame. https://www.cbc.ca/news/canada/british-columbia/what-you-need-to-know-about-bicycle-tariffs-1.5071380 https://www.cbc.ca/news/canada/british-columbia/what-you-nee...

Maybe the fact that EU has VAT? The final consumer price might be the same in US and EU but manufacturer can charge US retailers more because the sales tax is small compared to VAT.

TheOtherHobbes 6y ago

I'm curious about relative tariffs. If I buy an expensive custom modular synthesizer from the US, I'm going to get hit with import duties as well as VAT. As a business owner I can claim back the VAT, but the import duties are a non-trivial and non-recoverable extra. If buy a synthesizer from Thomann in the EU, I can also claim back the VAT. And there are no import duties - at least until January 2021 in the UK. So the final cost for a UK business buyer is 20% less than the nominal price. Does the US charge import tariffs on these items? I have no idea. But if it does, that would explain some of the differences. And it usually works the other way. The standard price in pounds for US tech sold in the UK is 1:1 with the US dollar price. The base iPhone 12 Pro Max is $1099 in the US. In the UK it's £1099, which is more than $1400. Even without VAT it's more than $1200. In Spain it's €1259, which is closer to $1500.

rahimnathwani 6y ago
Don't forget state+city sales tax. In San Francisco that adds 8.5%.
Scoundreller 6y ago
That US$1099 in the US is usually increased by 5-8% for sales tax. https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_Stat... Duties are another funny thing. At least in Canada, bike stuff from China has variable duties: > Importing a complete, assembled bicycle will cost you 13 per cent in duty. If you're just bringing the frame in, that's a five per cent tariff, and if you're importing complete wheels, there's a 6.5 per cent tariff. So, if you import tires and rims separately (even in the same package), there's no tariff! Frame + other parts, and you only pay on the frame. https://www.cbc.ca/news/canada/british-columbia/what-you-need-to-know-about-bicycle-tariffs-1.5071380 https://www.cbc.ca/news/canada/british-columbia/what-you-nee...