3 ms·
> It becomes impossible to invest in the EU. Really? If you invest in the EU, you can import the raw materials at whatever they cost, and sell your goods to t
by rstuart4133 1y ago
> It becomes impossible to invest in the EU.
Really? If you invest in the EU, you can import the raw materials at whatever they cost, and sell your goods to the world. If you invest in the US, you import your goods at cost + 15%, and can only sell to the US because elsewhere your goods cost 15% more than those coming from the rest of the world.
If it was a VAT, that doesn't happen because everyone gets to claim the VAT back on the cost of goods, and exports don't have VAT levied. But this is a tariff.
- impossiblefork 1y agoThe US can remove tariffs on raw materials imports in five minutes with an executive order. We can't assume that the US will hamper its industry for no reason, or that its raw materials industries will forever be inefficient.
- breadwinner 1y ago> elsewhere your goods cost 15% more than those coming from the rest of the world. That's impossible. Goods manufactured in the US will cost way more than that. The minimum wage in Vietnam is under $1 USD per hour, while in the US it ranges from $7.50 to $15 USD. So unless the product is manufactured by robots (which defeats the point of tariffs), products manufactured in the US will be around 10x more expensive than those manufactured in Asia.