4 ms·

But software/services are sold by EU companies (subsidiary)

• jillyboel 2y ago
  It's a nice accounting trick, but that's all it is.
• coldtea 2y ago
  If it's a subsidiary, there's a way to assosiate with the parent company.
  • michpoch 2y ago
    Sure, but then the other side can do the same. VW producing cars in their factories in the USA? Put a tariff on these cars as the parent company is based in Europe. It’s really not that simple, as e.g. big tech has their development centering the EU as well - so these products are at least partially produced here. If you want to write some custom rules, sure, but then you’re really opening a pandora box. Technically you could just add 100% tax just on vehicles that have Tesla in their name. Try making such moves and look as investors immediately drop any trust in your countries political system (and currency).
    • coldtea 2y ago
      >Sure, but then the other side can do the same That's expected. The other side already imposes some tarrifs (as did the EU - it's BS that Trump's tarrifs to EU are some unprecedented move, the EU already had tarrifs of US cars and other products). The problem we're discussing (at least according to a parent comment) is that the US has a lot more "digital services" products than actual physical products where EU tarrifs are currently applied. So, what's discussed is how to tax those (and how to sidestep "but it's a European subsidiary, not a US company" hurdle). So, sure the US can counter EU digital services by also using the same sidestepping. But it's not like EU has many such worth talking about. All the big players are from the US (Facebook, Google, Amazon, MS, etc).