3 ms·

Because the recent trade war has started a trend of "buy European' across the continent buy-european-made.eu

alchemist1e9 2y ago
Before these trade war escalations the US imposed an average tariff rate of about 3.5% on EU goods, notably lower than the EU’s 5.2% on US goods, and lacked the high, sector-specific tariffs seen in the EU. While the US maintained a relatively uniform rate, 2.5% on cars and slightly higher on food and chemicals—the EU targeted certain US sectors with very steep tariffs, like 32.3% on dairy. We should also mention VAT. The EU’s 21% VAT jacks up prices, a €100 item hitting €121 will slash demand. This provided around €1 trillion revenue for EU governments in 2024. While the US’s typical 7% sales tax keeps a $100 item at $107, hurting demand less, total about $457 billion in 2024. This gap makes US goods pricier in the EU (27.7% markup with tariffs) versus EU goods in the US (10.8% markup), acting like an extra trade wall for American exports, while the EU’s VAT refund on exports gives their firms a edge. Notice we haven’t even mentioned defense spending yet …
- Phelinofist 2y ago
  Do you understand that stuff made in Europe and sold in Europe is also subject to the VAT?
  - berdario 2y ago
    it seems he also overlooked, in his tirade against EU VAT, that almost the whole world has VAT. It's just an handful of countries like USA and Malaysia that are the weird ones, and don't implement a VAT tax
    - 9283409232 2y ago
      VAT is a reductive tax that taxes the poor instead of the rich. Coincidentally, Trump supports adding VAT to the US.
      - Pooge 2y ago
        Please call me out if I'm just being delusional but I think VAT is a great way to tax rich people. They already have a lot of ways to avoid taxes, but at least with VAT they pay the same as everybody else. They are going to buy expensive food or drinks at restaurants and 8% (in my country) of that is going to be taxed. Someone more modest is going to eat at a less expensive place and is going to pay 8% on something less expensive. I'm aware of the luxury tax but I don't think it's better than the VAT tax.
        9283409232 2y ago
        For people in poverty, 8% is the difference between getting that extra carton of eggs or not getting it. For rich people, it doesn't matter. It's not that VAT doesn't tax rich people it's that it taxes poor people a lot harder.
        Pooge 2y ago
        I completely get your point. What would you suggest, then?
        9283409232 2y ago
        A wealth tax, an estate tax, a tax on stock trades are all better options that hit the wealthy and not the poor.
        Pooge 2y ago
        > A wealth tax, an estate tax Do you mean having a higher wealth and estate tax? They both exist where I live, although they tend to hit the poor much more than the rich. > tax on stock trades I agree on this one but I think it's not a good idea to penalize people that invest for the long term. Perhaps tax only trades that happened over less than 10 years or something.
        2y ago
- wasabi991011 2y ago
  I'm not sure what your point is. Are you saying that the EU isn't being "fair" to the US? I'm not sure how that would change the incentive for European citizens to rely more on European products in the face of possible future tariffs.
- Hikikomori 2y ago
  Clown in charge is more than enough reason to divest from US.
palata 2y ago
Not that I disagree, but I think it's more than that: the US have started a trend of "boycott the US" across those who used to consider them as allies after... you know the US government not only embraced fascism but also started threatening to invade said ex allies and destabilising Europe. Pretty sure that there is a similar trend in Canada or Mexico, for instance.

Before these trade war escalations the US imposed an average tariff rate of about 3.5% on EU goods, notably lower than the EU’s 5.2% on US goods, and lacked the high, sector-specific tariffs seen in the EU. While the US maintained a relatively uniform rate, 2.5% on cars and slightly higher on food and chemicals—the EU targeted certain US sectors with very steep tariffs, like 32.3% on dairy. We should also mention VAT. The EU’s 21% VAT jacks up prices, a €100 item hitting €121 will slash demand. This provided around €1 trillion revenue for EU governments in 2024. While the US’s typical 7% sales tax keeps a $100 item at $107, hurting demand less, total about $457 billion in 2024. This gap makes US goods pricier in the EU (27.7% markup with tariffs) versus EU goods in the US (10.8% markup), acting like an extra trade wall for American exports, while the EU’s VAT refund on exports gives their firms a edge. Notice we haven’t even mentioned defense spending yet …

Phelinofist 2y ago
Do you understand that stuff made in Europe and sold in Europe is also subject to the VAT?
- berdario 2y ago
  it seems he also overlooked, in his tirade against EU VAT, that almost the whole world has VAT. It's just an handful of countries like USA and Malaysia that are the weird ones, and don't implement a VAT tax
  - 9283409232 2y ago
    VAT is a reductive tax that taxes the poor instead of the rich. Coincidentally, Trump supports adding VAT to the US.
    - Pooge 2y ago
      Please call me out if I'm just being delusional but I think VAT is a great way to tax rich people. They already have a lot of ways to avoid taxes, but at least with VAT they pay the same as everybody else. They are going to buy expensive food or drinks at restaurants and 8% (in my country) of that is going to be taxed. Someone more modest is going to eat at a less expensive place and is going to pay 8% on something less expensive. I'm aware of the luxury tax but I don't think it's better than the VAT tax.
      - 9283409232 2y ago
        For people in poverty, 8% is the difference between getting that extra carton of eggs or not getting it. For rich people, it doesn't matter. It's not that VAT doesn't tax rich people it's that it taxes poor people a lot harder.
        Pooge 2y ago
        I completely get your point. What would you suggest, then?
        9283409232 2y ago
        A wealth tax, an estate tax, a tax on stock trades are all better options that hit the wealthy and not the poor.
        Pooge 2y ago
        > A wealth tax, an estate tax Do you mean having a higher wealth and estate tax? They both exist where I live, although they tend to hit the poor much more than the rich. > tax on stock trades I agree on this one but I think it's not a good idea to penalize people that invest for the long term. Perhaps tax only trades that happened over less than 10 years or something.
        2y ago
wasabi991011 2y ago
I'm not sure what your point is. Are you saying that the EU isn't being "fair" to the US? I'm not sure how that would change the incentive for European citizens to rely more on European products in the face of possible future tariffs.
Hikikomori 2y ago
Clown in charge is more than enough reason to divest from US.

palata 2y ago

Not that I disagree, but I think it's more than that: the US have started a trend of "boycott the US" across those who used to consider them as allies after... you know the US government not only embraced fascism but also started threatening to invade said ex allies and destabilising Europe. Pretty sure that there is a similar trend in Canada or Mexico, for instance.