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So has anyone an idea how those tariffs would affect software sales? Say I'm a German guy selling a license for my software to someone in the US. Will this fall under tariffs, too. Or are software licenses somehow exempt? Asking for a friend(me).
I think the eu should look into taxes on u.s. services, instead of tariffs on products. Taxing AWS/Azure/etc +25% would do a lot in getting similar services in the eu expanded.
So, when I sell something to the USA (on eBay) for instance. It doesn’t pay VAT automatically. Do Americans pay VAT when it’s delivered?
But, when an American buys something locally, they do pay VAT, correctly?
So has anyone an idea how those tariffs would affect software sales? Say I'm a German guy selling a license for my software to someone in the US. Will this fall under tariffs, too. Or are software licenses somehow exempt? Asking for a friend(me).
On the first order no. The tariffs just announced are only on goods and are collected at the ports when you physically import them.
On the second and third order. What I think will happen is that the EU will mostly retaliate against US services. And then trump might counter retaliate against EU services. So I would start looking for customers outside the US.
The whole table doesn't make sense. We (NL/EU) don't charge the US 39% to import . Apparently orange guy (not the Dutch) doesn't understand VAT rates. Car? max 4.5 + 21% VAT = 25%. But it simply doesn't matter bc we don't want their cars.. Except for thee Dodge RAM, which can be converted to a tax efficient company car (crazy).. What amazes me even more is that Elon doesn't seems to understand it either.
And no, that does not make any sense, and you're not missing anything. He believes this because he's a fucking idiot. He's aggressively racist, comically petty and thin-skinned, and overtly authoritarian, and as far as I can tell actively wants to permanently destroy American science and civil society out of spite, but he's also really, really, really dumb. In this case, he's managed to combine his powers to take a goal that's born out of racism and xenophobia and then implement it in the most idiotic way possible, and somehow the result is even worse than the sum of its components.
The whole table doesn't make sense. We (NL/EU) don't charge the US 39% to import . Apparently orange guy (not the Dutch) doesn't understand VAT rates. Car? max 4.5 + 21% VAT = 25%. But it simply doesn't matter bc we don't want their cars.. Except for thee Dodge RAM, which can be converted to a tax efficient company car (crazy).. What amazes me even more is that Elon doesn't seems to understand it either.
The country that prints dollars doesn't have this to worry about.
Main problem is budget deficit and the huge pile of debt.
Since trade is conducted largely in USD, that means other governments must purchase USD to trade. This is the core of trade deficits. Foreign countries buy US dollars so they can trade with other people. That guarantees the deficit since they give us something in exchange for USD, which they do not then spend on goods we make.
If you no longer want the trade deficit that means payments of fealty by those who trade in dollars, which countries aren't likely to tolerate, or abandoning the USD as a global reserve currency, which would be disastrous, truly disastrous. Our debts would suddenly become existential because inflating our currency to pay for them could result in functionally not being able to import goods required to run our economy. I don't think many truly understand just how disastrous it will be.
This isn't America's liberation day. This is Russia's and China's liberation day. While America was once able to check their power, America is no longer in a position to do so, we will barely be in a position to satisfy our own military's logistics requirements.
This is a decapitation strike (Timothy Snyder: Decapitation Strike -- https://archive.is/1xkxK) on America by our enemies. It is not only a de facto soft blockade of American trade, but it is an attack on the mechanics of American hegemony. Politicians already ask for money instead of votes or actions. That means if foreign governments spend money, they can elect their preferred candidates. America's own government was a result of french support. We institute regime change in other counties, and I see no reason to believe we are immune.
If trade stops occurring in US Dollar, which is a consequence of the stated goal of our current ruling regime, that would be the coup de grace on this country's hegemony. It is the definitive end to it, and the birth of Chinese hegemony.
Ray Dalio's Principles for Dealing with the Changing World Order feels prescient: https://www.youtube.com/watch?v=xguam0TKMw8
Someone figured out that the new tariffs are just our trade deficit with that country divided by the country's exports. I think more and more we see lots of evidence they don't know what they're doing.
The golden prize for America's enemies is to remove the US dollar as a global reserve currency. Since trade is conducted largely in USD, that means other governments must purchase USD to trade. This is the core of trade deficits. Foreign countries buy US dollars so they can trade with other people. That guarantees the deficit since they give us something in exchange for USD, which they do not then spend on goods we m…
A blanket 10% minimum tariff is a great excuse for any local US manufacturing to increase their prices. I used to live in a country with heavy tariffs, every time tariffs were raised the local producers increased prices to be just below the imports. Even after the tariffs were abolished the prices (on local and imports) never really lowered in any significant way.
That's literally how tariffs are supposed to work. I'm confused about what you thought should happen?
Local producers are supposed to raise prices so there is more money for worker pay or business reinvestment or both.