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Trump announces EU trade deal with 15% tariffs
- aborsy 1y agoBasically, the plan was generally 10-15% baseline tariff across the board for all countries, and higher rates for sectors such as steel and aluminum.
- lewisleclerc 1y agoI could be wrong but once tariffs are set to higher rates, it's extremely difficult to lower them by subsequent leaders
- jfengel 1y agoPeople will definitely cheer when you lower prices. Businesses will push back, but that's also difficult since "we want to keep prices high" isn't a good lock. They have other ways to apply pressure, but it's (roughly speaking) a level playing field. It's only possible to have tariffs now because people don't grasp the consequences. When prices go up, the tariffs will be less popular.
- breadwinner 1y agoThis will lead to inflation. Once prices increase, the prices won't come down, so the inflation will be permanent. US manufacturers will get used to decreased competition, which will lead to poor quality and decreased innovation. Smuggling will increase, particularly from Canada. Instead of going to the Apple store to buy your next phone you will agree to meet a stranger in a dark alley and pay cash to buy a smuggled iPhone. The tariffs will be felt by poorer Americans while the rich will barely notice.
- pzo 1y agoProbsbly better to once a year go to Latin America or Asia for holiday and do all shopping there and any clinic appointments
- mensetmanusman 1y agoIf the government taxes goods by an additional 1%, is that 1% inflation?
- breadwinner 1y agoIf the price goes up then yes.
- tnt128 1y agoNo. Tax is on the cost. If the good sells for $100 and cost $10. Then 10% additional tax increase the cost to $11. If the vendor decides to keep the same profit, then the price goes up by $1, which is 1%
- tempera 1y ago[dead]
- mensetmanusman 1y agoThe $0.75T energy purchase is also huge. Russia shot itself in the face creating a failed state at its border and destroying trade relations.
- impossiblefork 1y agoThe big problem is that it's 15% US tariffs and no reciprocal EU tariffs. The problem created is this: EU firms get shut out of the US, but the US firms that compete with them are not shut out of the EU. Thus the US firms can operate at greater scale and outcompete the EU firms, leading to one-sided job losses having nothing to do with merit. So I can have a great, well-run EU firm and do everything right, and then I can lose it all for no reason, due to this insane political decision. If this is the protection the EU offers, then why should I invest my money here? Why should I even live here? Because from this I can only read it as that the commission believes that Americans should have more rights than I do and that I shouldn't be allowed to have a business.
- wdb 1y agoAnd then you have the EU invest $600 billion in the United States instead of the European Union. I hope EU hasn't also accepted lowering food quality down to US standards...
- impossiblefork 1y agoThat it hasn't, but small thanks.
- up-n-atom 1y agoMy take is that it’s all an illusion. The deal looks good on paper for the US. But EU/Japan/etc. big business will setup subsidiaries in tax haven states such as Texas or Florida and sell back to themselves. Similarly to how US firms used Ireland.
- impossiblefork 1y agoThat isn't really possible. If goods are brought into the US, with tolls paid, and then sold for much more than the assessed value, the goods will probably be seized. This agreement is certainly exactly as bad as it looks. No one has historically entered into an agreement like this. Not Sweden when it was a tiny country not part of the EU, no country whatsoever. When a country has been had its goods tariffed the response has always been to counter those tariffs with tariffs on goods with an equal value, so this agreement is completely exceptional.