3 ms·
> Trump commonly mentions that the EU charges a 10 percent import tax on US vehicles while the US only levies a 2.5 percent tariff on European cars coming into
by rayiner 2y ago
> Trump commonly mentions that the EU charges a 10 percent import tax on US vehicles while the US only levies a 2.5 percent tariff on European cars coming into the US
That seems pretty significant no? Why do we need German cars anyway?
- eigart 2y agoThey are better. Edit: This is a bit tongue in cheek, but I imagine there's a limited demand for american vehicles in Europe just due to the market fundamentals. Raising tariffs on European vehicles disproportionately harms american consumers. Tesla has a significant production capacity in Europe, probably because it was in demand in Europe.
- rayiner 2y agoBut are they better enough that it’s worth exporting jobs and industrial capability abroad?
- eigart 2y agoI think it’s the other way around. US and China is applying a downward pressure on EU taxes and labor rights, and VAT balances it by treating everyone equally. Keep in mind, a German built vehicle pays VAT on all the imported materials and components too. I imagine that is a significant share. When most other countries apply VAT, I think the correct counter for the US is to do the same.
- aredox 2y agoYeah but these are tarriffs. Negotiate, if you want to get them away - but Trump has shown that his own word (the "beautiful" trade deal he signed during his first term) is worth absolutely nothing.