You can’t equate VAT and sales tax, as the article explains. It’s an inherent property of US sales tax that it pyramids (multiplies on each intermediary sale).

You can’t equate VAT and sales tax, as the article explains. It’s an inherent property of US sales tax that it pyramids (multiplies on each intermediary sale). You would have the analogous effect if you sell the US-produced car to a US-based reseller: The sales tax on the steel is lost to you as well then, you don’t get it refunded from the sales tax paid by the US end consumer who buys the car from the reseller. So if anything, the sales-tax system should be critized, not the VAT. The EU import VAT has the purpose of treating EU producers and foreign producers equally, by subjecting both to the same tax rate. But you can’t blame the EU for steel being effectively more expensive in the US (if that is actually the case), similar to how you can’t blame the EU for labor costs being higher (or lower) in the US.