10% is an arbitrary and low number. We should have reciprocal tax adjustments at the border with every country.
China adds a 17% VAT to all goods imported to their country. They also have item-specific tariffs up to 100%. When they export their goods to us, they issue a VAT credit to their producers which makes Chinese made goods less expensive in America than they are in China.
The EU does the same to us.
Rather than trying to come up with a number like “10%”, we should make tariffs and credits reciprocal — we tax at the border exactly the same rate they tax our goods at their border, and we use the revenue to issue credits to our exporters in the same percentage that they do.
For China, that should mean we put a 17% tariff on their goods and issue a 17% tax credit to our exporters to China. Then do the same to counter any special tariffs or duties they have placed on our goods.
This is brilliant
Yes that’s the nrst as you know.
Would also help repatriate cash.