European Tariff Situation Gets Its Own Thread
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Didn't see a forum thread that specifically covered the topic of (potential) tariffs on the Europe. (and the below would have the biggest impact on Europe)
https://www.axios.com/2025/02/15/trump-vat-tariff-europe
President Trump said Saturday the U.S. will treat value added tax (VAT) systems the same as tariffs, for purposes of helping to calculate the reciprocal levies on other countries he ordered earlier this week.
At least 175 countries globally have a VAT, per the Organisation for Economic Co-operation and Development (OECD), meaning it could impact the math on any reciprocal tariff for most nations around the world.
The impact could be most immediate in the European Union, which has standardized value added taxes with an average rate of almost 22%.
"For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff," Trump wrote on Truth Social.
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The Financial Times reported earlier on Sunday that the European Commission would agree next week to explore tough import limits on certain foods made to different standards in an effort to protect its farmers, echoing Trump's reciprocal trade policy.
Early targets could include U.S. crops such as soybeans grown using pesticides that EU farmers are not allowed to use, the report said, citing three officials it did not name.
Trump, speaking to reporters after a quick trip to Daytona Beach for the Daytona 500 car race, said the U.S. was sticking to its plans to start implementing reciprocal tariffs.
"That's alright. I don't mind. Let them do it. Let them do it. It's just hurting themselves if they do that," he said.
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"For purposes of this United States Policy, we will consider Countries that use the VAT System, which is far more punitive than a Tariff, to be similar to that of a Tariff," Trump wrote on Truth Social.
Proof that Trumpigula really doesn’t have a clue after all. No clue whatsoever.
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@Klaus said in European Tariff Situation Gets Its Own Thread:
Fair trade is win-win for both sides.
We all know the problem with this, but TDS prevents mention of the obvious.
The cheap labor in Asia has led to the elimination of manufacturers in the US.
Is a domestic manufacturing capability desirable? The correct answer depends on unknown future events, but it is certainly possible that a domestic manufacturing capability could become critical to our safety. That is worth something.
In any case we aren't going through this just because the president is stupid. However, we all understand that TDS demands a stupid president, carry on.
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@Copper said in European Tariff Situation Gets Its Own Thread:
@Klaus said in European Tariff Situation Gets Its Own Thread:
Fair trade is win-win for both sides.
Is a domestic manufacturing capability desirable? The correct answer depends on unknown future events, but it is certainly possible that a domestic manufacturing capability could become critical to our safety. That is worth something.
Then create internal conditions that attract global investment voluntarily in manufacturing industries. That might entail reducing the costs of US labour and curbing the USA’s insatiable appetite for the consumption of cheap goods.
In any case we aren't going through this just because the president is stupid. However, we all understand that TDS demands a stupid president, carry on.
That’s probably right. Trump’s not stupid rather he’s just cluelessly ignorant and an extortionist in his method of dealing with other countries. A bit like his buddy in the Kremlin. Neither are really all that intelligent.
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@Copper said in European Tariff Situation Gets Its Own Thread:
The cheap labor in Asia has led to the elimination of manufacturers in the US.
Is a domestic manufacturing capability desirable? The correct answer depends on unknown future events, but it is certainly possible that a domestic manufacturing capability could become critical to our safety. That is worth something.
You make good points, but mostly speaking, people vote and buy with their wallets.
How many people talk about wanting to buy "local" as they order off of Amazon or Walmart.
If President Trump makes policies to have more things made local but it increases the inflation rate quite a bit, then the Repulbics will not have the majority in 4 years.
Tough situation.
