Lovely. Because aviation, especially general aviation, isn't expensive enough already.
Airbus hit as new US tariffs come into force
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Re: Airbus hit as new US tariffs come into force
#112How are goods valued when it’s transferred across borders within the same organization? Parts from France to be assembled in Alabama aren’t necessarily “sold” so don’t need a value. How are tariffs calculated then?
Re: Airbus hit as new US tariffs come into force
#113Earlier quoted context omitted.
Except tech companies pay almost 0 taxes in Eu, while wines etc. were already @ 14%, raised @ 25 %. Also tech companies have no competition in the EU, while wines and planes have competition in the US.
Trade wars aren’t about fairness, they’re about leverage. Fairness would be no tariffs at all and no taxes that effectively act as tariffs because there’s no comparable domestic competition. Life isn’t fair though.
I don't know about no tariffs beig the fairest model.
One reasonable thing to impose tariffs on is products made with slave labor, or labor paid at less than the minimum wage in your own country. The benefits are twofold, disincentivizing slave labor in other countries, and incentivizing local supply.
Re: Airbus hit as new US tariffs come into force
#114"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…
I don't think we forgot to tax sarcasm, we just like the English more than the French
We're all hopeful that things will get better when we have an actual adult in charge of America. Sorry on behalf of the rest of us for the mess that we've made of things. We're trying to fix it!
Re: Airbus hit as new US tariffs come into force
#115"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.
There is probably more to that - does the current administration really bother with tech companies? Or is it a move to further (a) deteriorate relations before the new admin takes over or (b) create leverage for upcoming trade talks?
Re: Airbus hit as new US tariffs come into force
#116Earlier quoted context omitted.
Trade wars aren’t about fairness, they’re about leverage. Fairness would be no tariffs at all and no taxes that effectively act as tariffs because there’s no comparable domestic competition. Life isn’t fair though.
I don't know about no tariffs beig the fairest model. One reasonable thing to impose tariffs on is products made with slave labor, or labor paid at less than the minimum wage in your own country. The benefits are twofold, disincentivizing slave labor in other countries, and incentivizing local supply.
No, I mean in fairness, no tariffs is about as fair as it gets as far as trade goes.
There are good reasons to impose tariffs otherwise. Slavery is a good reason, and the counterparty-country being a communist dictatorship is another good reason. You want to start a list?
Re: Airbus hit as new US tariffs come into force
#117> The tariff will have a significant effect on production of the Airbus A320 in Mobile, Alabama, something which Airbus has claimed will only hurt US workers.
How will this hurt US workers?
Sounds like this is suggesting that either they will pay the workers less to compensate, or maybe even move the factory elsewhere to avoid the tariffs (moving the factory to mexico might mean the tariffs disappear until new tariffs against shipping planes from mexico get approved, which might take some time).
Re: Airbus hit as new US tariffs come into force
#118Earlier quoted context omitted.
They are upset at France taxing tech companies. The targeted attack is very much intentional and intended to be a tit for tat.
Except tech companies pay almost 0 taxes in Eu, while wines etc. were already @ 14%, raised @ 25 %. Also tech companies have no competition in the EU, while wines and planes have competition in the US.
To elaborate on what others have said re: retaliation, EU tariffs on goods are generally higher than those of the USA[0], so if anything this will just close the gap and make total tariffs paid more even. The USA in general has the lowest import tariffs on goods of all major countries (even after all the Trump escalations). It also has a large goods import gap (importing much more than it exports). It makes up a lot of that gap in services, so when France passed a tax specifically targeting its most important "service" companies (internet giants), it sees that as a HUGE trade escalation, even though that absolute tax those companies pay in Europe was previously laughably small in absolute terms.
One could argue that despite all the headline drama, evening US-EU goods tariffs and making US tech companies pay taxes in Europe lands on a more equitable arrangement, rather than de facto subsidizing EU agriculture and US tech.
[0]It's hard to find intuitively meaningful numbers for this stuff since it's so complicated, but you can see that the EU "general goods" tariff has a mean average of 5.1% vs 3.4% for the USA here: https://www.wto.org/english/res_e/booksp_e/tariff_profiles20...
Re: Airbus hit as new US tariffs come into force
#119Earlier quoted context omitted.
Doesn't the EU already have very high tarriffs on a lot of things imported from the US? Cars for example?
Nobody is trying to buy a Ford...
This is ignorant. The Ford Fiesta for example is a top-five car in the EU. They're everywhere.
https://www.best-selling-cars.com/europe/2019-full-year-euro...