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Airbus hit as new US tariffs come into force

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Re: Airbus hit as new US tariffs come into force

#51

Post by volta87 »

_ea1k wrote: post #24
cmehdy wrote: post #8

"Among the goods to see an impact from the widened net of additional duty are European made wines, which will attract a 25% duty, and French and German-made aircraft parts, attracting a 15% tax." As a French person, I can't help but feel like there's some sort of personal attack happening there. Wine and airplanes? Hey, I think you guys forgot to tax cheese and sarcasm while you're at it! Let's hope that a new US adm…

Doesn't the EU already have very high tarriffs on a lot of things imported from the US? Cars for example?

I recall that when Trump started taxing European steel, the EU looked for companies in Republican states that were seen positively by Trump supporters and sniped them with extremely specific tariffs.

Harley Davidson was one of these companies. They weren't doing well before they got caught in the middle of this trade war, since the "biker" culture it aimed at was shrinking globally, so in a move to survive they decided to move production to South America. Turns out their audience didn't like this move, and its death accelerated.

TL;DR: Trump put a tax on European steel, and the EU snipped Harley Davidson in retaliation.

Re: Airbus hit as new US tariffs come into force

#53

Post by evgen »

gruez wrote: post #38
cmehdy wrote: post #8

"Among the goods to see an impact from the widened net of additional duty are European made wines, which will attract a 25% duty, and French and German-made aircraft parts, attracting a 15% tax." As a French person, I can't help but feel like there's some sort of personal attack happening there. Wine and airplanes? Hey, I think you guys forgot to tax cheese and sarcasm while you're at it! Let's hope that a new US adm…

>As a French person, I can't help but feel like there's some sort of personal attack happening there. Wine and airplanes? Hey, I think you guys forgot to tax cheese and sarcasm while you're at it! Didn't the EU do the same thing with their retaliatory tariffs a few years ago? They were taxing some uniquely "american" goods, eg. harley davidson motorcycles.

Actually, most EU tariffs are rather poorly targeted. China is much better at making sure the pain is felt in very specific states and congressional districts to ensure that the message is delivered. Harleys, like wine, is generally considered a luxury good and so makes an easy target.

Re: Airbus hit as new US tariffs come into force

#55

Post by godzillabrennus »

jdsully wrote: post #12
cmehdy wrote: post #8

"Among the goods to see an impact from the widened net of additional duty are European made wines, which will attract a 25% duty, and French and German-made aircraft parts, attracting a 15% tax." As a French person, I can't help but feel like there's some sort of personal attack happening there. Wine and airplanes? Hey, I think you guys forgot to tax cheese and sarcasm while you're at it! Let's hope that a new US adm…

They are upset at France taxing tech companies. The targeted attack is very much intentional and intended to be a tit for tat.

Trade wars are fun like that.

Hopefully cooler heads prevail after the wine industry in France gets their politicians to back down.

Re: Airbus hit as new US tariffs come into force

#56

Post by CydeWeys »

volta87 wrote: post #51
_ea1k wrote: post #24

Earlier quoted context omitted.

Doesn't the EU already have very high tarriffs on a lot of things imported from the US? Cars for example?

I recall that when Trump started taxing European steel, the EU looked for companies in Republican states that were seen positively by Trump supporters and sniped them with extremely specific tariffs. Harley Davidson was one of these companies. They weren't doing well before they got caught in the middle of this trade war, since the "biker" culture it aimed at was shrinking globally, so in a move to survive they decid…

Trade wars do tend to be bad for everyone involved. Like rent control, it's very hard to find any economist that will even support it.

Re: Airbus hit as new US tariffs come into force

#57

Post by seanmcdirmid »

orwin wrote: post #36
akmarinov wrote: post #19

Earlier quoted context omitted.

It's all due to digital taxing companies like Apple, Google, Amazon. France put in a 3% tax on digital services, some other countries did it as well. The EU as a whole plans to do a 3% tax on all digital services in 2021. The US is angry about it, since all the major tech companies happen to be american.

>The US is angry about it, since all the major tech companies happen to be american. And chineese. This new Whatsapp thingy would have been another disaster in Europe if we were not protected by the RGPD.

Chinese media tech companies don’t do much business outside of China. Alibaba already gets taxed as a retailer. Zoom actually sells something.

Re: Airbus hit as new US tariffs come into force

#58

Post by TorKlingberg »

belval wrote: post #18
ppeetteerr wrote: post #4

If this is similar to the old tariffs, it affects only new aircraft. Some airlines were already buying Airbus planes from Europe and flying them in South America long enough for the planes to be considered "old" so that they may be excluded from the tariffs.

You have to admire the out-of-the-box and absurdity of that solution. Someone actually sat in an office and realized he could save money by letting aircrafts decay in South America before using them.

I'd think this kind of thing gets discovered organically. Airlines constantly buy and sell planes. South American airlines will notice that they can sell couple-year-old aircraft to the US for good money and upgrade to brand new Airbuses at hardly any cost to them.

Re: Airbus hit as new US tariffs come into force

#59

Post by JumpCrisscross »

csomar wrote: post #39
_ea1k wrote: post #24

Earlier quoted context omitted.

Doesn't the EU already have very high tarriffs on a lot of things imported from the US? Cars for example?

I mean this is something people from both sides can agree with Trump on. The world has been taking the USA for a ride when it comes to trade. The EU is really defensive , and will protect its industry above else. It does also bully smaller countries (like Tunisia, stop illegal immigration or we reduce trade, etc...); but the US gets most of the bad press.

> The world has been taking the USA for a ride when it comes to trade

This is a function of our China policy and insistence on maintaining the dollar as the world’s reserve currency.

Re: Airbus hit as new US tariffs come into force

#60

Post by ppeetteerr »

MattGaiser wrote: post #45
belval wrote: post #18

Earlier quoted context omitted.

You have to admire the out-of-the-box and absurdity of that solution. Someone actually sat in an office and realized he could save money by letting aircrafts decay in South America before using them.

Laws create absurd situations. In Canada, it was cheaper for pizza companies to buy cheese with pepperoni from the US than buy cheese here. https://www.betterfarming.com/online-news/feds-close-pizza-c...

I hope we can one day talk about cheese on HN. That entire industry survives on tariffs and government handouts.
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