Airbus hit as new US tariffs come into force • Hacker News Board

Re: Airbus hit as new US tariffs come into force

#131

Post by eclipseo76 » Tue, Jan 12, 2021, 5:27 PM UTC

akmarinov wrote: post #19

larrik wrote: post #10

Earlier quoted context omitted.

It's to penalize AirBus for being propped by France and Germany, supposedly. Wine and liquor got caught up in the mix somehow too.

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.

And this won't change with the Biden administration since he's been propped up by these very same companes.

Re: Airbus hit as new US tariffs come into force

#132

Post by maxerickson » Tue, Jan 12, 2021, 5:28 PM UTC

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…

Customers of airlines that already own Airbus planes will pay the tariffs, and they aren't particularly going to stop flying them over the prices of parts, so…

Wine is probably less directly pointless to charge a tariff on, but if the tariff is on the import price, it won't particularly be a big piece of the retail price, and it will be paid by the person buying the wine.

We are taxing ourselves to own the French!

Re: Airbus hit as new US tariffs come into force

#133

Post by fogihujy » Tue, Jan 12, 2021, 5:28 PM UTC

anewaccount2021 wrote: post #44

piewzko wrote: post #31

Hopefully US and EU relations will improve in the coming years. Performing these type of actions between such close allies is just mind boggling.

I don't think this really signifies a meaningful deterioration - this has been happening forever. Its diplomacy by trade policy. The EU does the same to us, we do the same to Canada, Canada does the same to us. Usually the penalized industries are just propped up with subsidies in the targeted country anyway. If anything, trade wars were more vicious a century ago than they are now. In most of these nations, the meas…

There are concerns, especially in regards to the legality of Office 365.

Re: Airbus hit as new US tariffs come into force

#134

Post by hyperman1 » Tue, Jan 12, 2021, 5:28 PM UTC

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…

Interesting that it happens with France and wine. Not so long ago France decided to raise VAT on (Belgian imported) beer but not on (France fabricated) wine. Of course that had absolutely nothing to do with protectionism.

Re: Airbus hit as new US tariffs come into force

#135

Post by Grollicus » Tue, Jan 12, 2021, 5:32 PM UTC

Wikipedia has a summary of the history of this shitshow:

https://en.wikipedia.org/wiki/Competition_between_Airbus_and...

Re: Airbus hit as new US tariffs come into force

#136

Post by volta87 » Tue, Jan 12, 2021, 5:32 PM UTC

harg wrote: post #127

volta87 wrote: post #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 tariff…

That’s assuming that all the planes manufactured in Alabama are not exported outside the USA. E.g. to airlines registered in Mexico, Canada, S America. I imagine that at least some are exported so moving manufacturing outside the USA would definitely hurt employment.

IIUC the goal of the Alabama factory is to work around the existing tarifs on shipping planes to the US. Instead of shipping the planes, Airbus ships the parts, and assembles them in the US, thus avoiding the plane tarifs. So now there are tariffs on "plane parts".

Maybe they'll just stop doing this, close the factory, and ship whole planes from the EU again. Depends what the difference is in the plane and plane parts tariff, and whats more worth it.

Re: Airbus hit as new US tariffs come into force

#137

Post by albertgoeswoof » Tue, Jan 12, 2021, 5:33 PM UTC

maxcan wrote: post #111

Lovely. Because aviation, especially general aviation, isn't expensive enough already.

Actually it’s remarkably cheap considering the environmental impacts.

Re: Airbus hit as new US tariffs come into force

#138

Post by bluecalm » Tue, Jan 12, 2021, 5:34 PM UTC

If the whole Covid situation taught us something it's that we need to be more independent of other countries and encourage local production of many goods. Tariffs sound like an easy way to do just that. Tax imports, help local producers. I don't see the problem tbh. All those free trade models ignore the scenario of everyone getting dependent on one exporter and then that exporter either going rouge or having problems and not being able to meet the demand anymore.

I am very surprised by tariffs = war sentiment. It's just a way to have some protectionism. It works and is needed. Where is the problem?

Re: Airbus hit as new US tariffs come into force

#139

Post by iso8859-1 » Tue, Jan 12, 2021, 5:39 PM UTC

otoburb wrote: post #49

Certain European wines under 14% ABV, whiskies, cheeses and other agriculture products have been levied a 25% import tax by the USTR since October 18, 2019.[1][2] [1] https://time.com/5704663/trump-tariffs-whiskey-wine-cheese-e... [2] https://www.decanter.com/wine-news/us-eu-wine-tariffs-100-pe...

Did American cider stocks go up because of this?

Re: Airbus hit as new US tariffs come into force

#140

Post by cycrutchfield » Tue, Jan 12, 2021, 5:39 PM UTC

medium_burrito wrote: post #94

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…

It's genius. French wines are consumed by a tiny portion of Americans, so it basically only affects a small slice of people who don't care if it costs a bit more.

That’s BS. Plenty of people care that it costs more. It also hurts American distributors of French wine as well, many have had their businesses suffer as a result of this stupid trade war.