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
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?