it runs a DEFICIT with the US w.r.t. services of EUR 109 billion
Posted on 04/07/2025 3:53:15 AM PDT by RandFan
Stock markets across Asia and Europe have been hit with significant lows, as tariff announcements by US President Donald Trump continue to be felt across the markets.
If you're just joining us now, here's what you've missed so far this morning:
In Hong Kong, the Hang Seng Index closed down 13.22% which marks a 28-year low for the exchange
In Taiwan, a 9.7% drop at close resulted in a record low for Taipei's TAIEX index
In Europe, the UK's FTSE 100 index opened nearly 6% down and Germany's Dax plunged almost 10% at the start of trading
European markets have now regained some ground so expect to see figures fluctuate throughout the day
(Excerpt) Read more at bbc.co.uk ...
Be careful that's all I'm saying. We're all adults and can make our own decisions
Some said last night to me they played the 1987 “black Monday” crash on the Tuesday and did well.
So maybe just a watching brief for now.
When anyone can reasonably explain why it was ok and even good for those countries to have tariffs on us but somehow it is bad for America to do it.. I may start considering their viewpoint, until then you have no argument.
Fair and free does not mean one side gets to have a forced advantage over the other.
As I found on the trade websites
Standard EU Tariffs on U.S. Goods
Industrial Goods: The average tariff rate for non-agricultural products, such as machinery and chemicals, is approximately 4.2%. Specific rates can range from 2% to 5% depending on the product category.
Cars: The EU applies a 10% tariff on U.S.-made passenger vehicles.
Agricultural Goods: Tariffs on agricultural products are generally higher, averaging around 10% to 30%. For example, dairy and meat products can face tariffs up to 25%, though some specific rates vary by product.
Standard U.S. Tariffs on EU Goods (Pre-2025)
Industrial Goods: The average U.S. tariff on non-agricultural products from the EU was approximately 2.5%. This covered items like machinery, chemicals, and electronics.
Machinery and Electrical Equipment: Typically around 1% to 3%.
Vehicles: A 2.5% tariff applied to most passenger cars from the EU, though light trucks faced a higher 25% rate (the so-called “chicken tax”).
Agricultural Goods: Tariffs on agricultural imports were higher and more variable, averaging around 5% to 10%, though specific products could face much higher rates.
Dairy Products: Tariffs often ranged from 15% to 20%, with some cheese varieties hitting over 25%.
Wine: Generally low, around 5 to 10 cents per liter (roughly 1% to 2% ad valorem), though sparkling wines could see higher rates.
Processed Foods: Varied widely, from 2% to 15%, depending on the product (e.g., confectionery or baked goods).
Textiles and Apparel: Tariffs averaged around 7% to 12%, with some clothing items reaching up to 20% or more.
Footwear: Rates typically ranged from 5% to 10%, though certain types (e.g., leather shoes) could exceed 20%.
Key Exceptions and Trade Disputes
Steel and Aluminum: Before 2025, the U.S. had imposed a 25% tariff on EU steel and a 10% tariff on EU aluminum starting in June 2018 under Section 232 national security measures. These were partially suspended in 2021 through a tariff-rate quota (TRQ) system, allowing limited duty-free imports until March 31, 2025
it runs a DEFICIT with the US w.r.t. services of EUR 109 billion
You’re not counting the VAT games they play too.
You’re correct, that was just of the tariffs charged
The European Union (EU) applies Value Added Tax (VAT) to goods imported from the United States (and other non-EU countries) at rates that vary by member state. The EU has a harmonized VAT system, but each of the 27 member countries sets its own standard VAT rate, which must be at least 15% as per EU rules. In practice, these rates typically range between 17% and 27%, depending on the country where the goods enter the EU and the type of goods being imported.
When U.S. goods are imported into the EU, VAT is levied on the total value of the goods, which includes the cost of the goods themselves, shipping costs, and any applicable customs duties. The VAT is usually charged at the point of entry into the EU during customs clearance. For example:
In Germany, the standard VAT rate is 19%.
In France, it’s 20%.
In Ireland, it’s 23%.
In Hungary, it’s 27%, the highest in the EU.
Since VAT rates differ across EU countries, there’s no single rate for all U.S. imports.
Note that VAT doesn’t target U.S. goods specifically—it’s a broad consumption tax
It doesn’t seem to be any kind of a “game” per se considering that all goods get charged this - note that this hits goods produced wherever, whether in the EU, in the USA or China or anywhere else.
Exactly!
When anyone can reasonably explain why it was ok and even good for those countries to have tariffs on us but somehow it is bad for America to do it.. I may start considering their viewpoint, until then you have no argument.
Fair and free does not mean one side gets to have a forced advantage over the other.
**********
Exactly.
as i understand it, tariffs aee only a part of the picture. there are trade restrictions, licensing agreements, bans,etc that pile on top to impede, complicate, etc. that’s why nation by nation negotiations will happen.
they are in catch-up as they had closed before our Friday swoon.
DOW remains overpriced
1990>2,600
1999>11,500
2010>11,600
2019>28,500 (yeah trump)
2020>30,600
2024>42,500
An excellent illustration of inflating "value" ....
But the VAT applies to shipping costs, thus making imports less competitive. It’s a non-tariff barrier to imports, which disadvantages U.S. imports even without a he disproportionate tariffs.
Global markets are returning to the level they were when America’s economy was king.
“...DOW remains overpriced...”
Either that, or it illustrates how bad the dollar has depreciated in the last 30 years.
The days when the world sucks on America’s teet, is over.
VAT applies to all goods irrespective of where they are produced
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