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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

#101
post #82
post #53

Earlier quoted context omitted.

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.

What's preventing the EU from being more targeted like this? Is it the collaborative deliberation (EU) vs. single-party rule (CN)? Is targeted tariffs something the G8/WTC doesn't like/promote?

To be honest I am not sure. From what I have read you were right on the first guess. When China applies tariffs it is a single political body making the decisions, while the EU needs to deal with a lot of different national interest groups all applying to get the benefits of tariffs for their product or service. Back when Trump started doing his initial rounds of tariffs and inviting reciprocation from China and the EU the Economist had a nice map that showed the regions impacted by the tariffs from the EU vs. China. The EU tariffs were all over the place and a lot of them hit west coast areas that competed with the EU but had little impact on the decision-making, while the Chinese tariffs looked like a 2016 electoral map. (The latter was probably helped by the fact that China imports more cereal grains from the US than does the EU so they had an easy way to hit midwest and great plains states.)

Re: Airbus hit as new US tariffs come into force

#104
post #9
post #3

Tariffs don't hurt the producer as much as the consumer. But stupid politicians will tell you otherwise because they think they are smart!

How do you maintain wage and standard of living differentials with the rest of the world when transportation is as cheap as it currently is without a productivity gap, tariffs, or a carbon tax (increasing transportation cost) to make local manufacturing more attractive? Besides, there are big strategic reasons to maintain a strong domestic aerospace industry, even if it increases costs in the short run.

Like Adam Smith pointed out, the ideal set-up is to maximize imports and minimize exports. This will make your nation richer over the long run.

Re: Airbus hit as new US tariffs come into force

#105
post #95

Earlier quoted context omitted.

Nobody is trying to buy a Ford...

Huh? Ford has a reasonable market share in the EU. They sell a little under a million units a year there. https://www.statista.com/statistics/642946/eu-ford-car-sales...

I suspect most Fords sold in the EU are manufactured in the EU or its former member state:

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

Re: Airbus hit as new US tariffs come into force

#106

Earlier quoted context omitted.

Boeing will never be allowed to collapse as it's the US's only competitor to Airbus and a major defense contractor.

Should just nationalize it then. Otherwise propping up a company like that is anti-freemarket.

It kinda already is right? Many of their defense contracts end up being practically blank checks.

Re: Airbus hit as new US tariffs come into force

#107
post #38

Earlier quoted context omitted.

>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.

That was symbolic, I think for something Trump did. It probably didn't even had a real impact on Harley Davidson sales in Europe. It was chosen because many know the brand, escalating a trade war would be stupid for both sides.

It was targeted at specific congressmen iirc, wasn’t Kentucky (McConnell?) targeted through a bourbon tariff?

Re: Airbus hit as new US tariffs come into force

#108

Is this an attempt to prop up Boeing from collapse? Really lame solution if so.

The EU subsidized Airbus for decades to enable it to compete with Boeing. China does the same with many of their industries. Japan and Korea did the same before them. Every country has an interest in having strong industry.

Re: Airbus hit as new US tariffs come into force

#109
post #95

Earlier quoted context omitted.

Nobody is trying to buy a Ford...

Huh? Ford has a reasonable market share in the EU. They sell a little under a million units a year there. https://www.statista.com/statistics/642946/eu-ford-car-sales...

Most of those will have been made in the EU though

Re: Airbus hit as new US tariffs come into force

#110

Is this an attempt to prop up Boeing from collapse? Really lame solution if so.

The EU subsidized Airbus for decades to enable it to compete with Boeing. China does the same with many of their industries. Japan and Korea did the same before them. Every country has an interest in having strong industry.

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