Posted on 02/17/2025 12:18:17 PM PST by Tell It Right
President Donald Trump announced Thursday that his administration’s reciprocal tariff policy will include foreign value-added taxes (VATs) and non-tariff barriers, a move that could significantly alter the global trade landscape by targeting tax structures and regulatory policies that have long been criticized as unfair to U.S. businesses.
(Excerpt) Read more at breitbart.com ...
Glad to see Trump is back in the game of fighting fire with fire in hopes that the other countries drop their tariffs and etc.
This has been the big lie about “Free Trade” for decades. We do not actually have Free Trade in the sense economists mean “free trade”. We have Managed Trade and it always managed to our disadvantage
>> his administration’s reciprocal tariff policy will include foreign value-added taxes (VATs)
BRILLIANT!!!
Wow, this is incredible!
Only a few days ago did This Guy become aware of the double punch knockout that the combination of import tariffs and VATs perform against U.S. exports.
And...poof!...just like that, the Trump administration fires either a broadside, or at least a shot across the bow, against profligate or unfair use of VATs in overseas economies.
Timing is perfect. Talk about putting both our adversaries, and our ostensible allies, on their back foot!
Free Trade advocates rarely talk about foreign VAT taxes, licensing rules, export rebates, market access restrictions, export subsidies, etc.
Just tariffs on imports.
An honest Free Trade position would be to abolish all tariffs no matter what the foreign country does.
Huge Trump fan here...but dumb something down for me.
A European VAT is a tax that Europeans pay on goods that they purchase, regardless of the origin of the product, e.g., when an Italian buys a BMW, he pays the European VAT.
When he buys an imported Chevrolet, he pays the VAT (same rate he pays when he buys a BMW) AND he pays a tariff or duty...I guess in some cases from 10% - 20%.
I thought it was this last tax...the tariff or duty that Trump thought was unfair.
The VAT is “not unfair” and should not be taken into account in his war on unfair tariffs imposed on U.S. products imported into Europe because Europeans pay the same VAT (rate) when they buy products made in the EU.
Taking into account the VAT does not make sense if you are simply looking for equal treatmenet.
Thoughts?
VAT taxes are applied to imports and rebated on exports by the EU. It an indirect tarrif pretending to be a tax
I am a long-time advocate of the FAIRtax.
This linked article will provide you with an answer to your question. It is a long, but very worthwhile read: https://mr.cdn.ignitecdn.com/client_assets/fairtaxorg/media/attachments/57be/78aa/6970/2d1f/f238/0d00/57be78aa69702d1ff2380d00.pdf?1472100522
I am excited about President Trump’s efforts to “level the playing field” re: US trade, and I firmly believe that a sane mixture of import duties and the FAIRtax will help Make America Great Again!
In addition, eliminating the Marxist inspired “progressive” income tax and the IRS will be VERY beneficial to the American people and the US ecomomy!
I encourage you to fully investigate the FAIRtax at https://www.fairtax.org.
Add to that the hundred of billions of stolen or wasted tax dollars.
Roger that!
The goal is roughly equal trade, not equal tax collections. Taxes reduce demand, so demand for American products is reduced in Europe, while demand for European products in America is not, resulting in a permanent trade imbalance. That's a no go in Trump's world of deal making. A fair trade agreement is proven fair by no permanent trade imbalance. Anything else is unsustainable.
We may need the gallows, Dick!
‘Bout the damn time!
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