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US Administration announces 34% tariffs on China, 20% on EU

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Re: US Administration announces 34% tariffs on China, 20% on EU

#371

Post by csmpltn »

olejorgenb wrote: post #72

Can someone explain if there's any logic at all to counting a countrys VAT as part of its tariffs? In my home country VAT is ultimately charged the end-customer and this happens regardless of the origin of the goods. How can this be a seen as a tariff? Besides, isn't the "Use tax" most(?) American states have more or less equivalent in function?

European VAT makes it difficult for American companies to compete in Europe. US has no VAT, making it easier for European companies to compete in America...

Combined with the fact that the US is the de-facto largest benefactor of NATO, Ukraine, UN, etc... then the US is getting shafted by the EU and Trump is correct in seeking ways to mitigate that.

Applying this economical pressure on the EU is a valid strategy, IMHO.

Re: US Administration announces 34% tariffs on China, 20% on EU

#372

Post by aurareturn »

doener wrote: post #225

"This guy cracked the tariff formula: @orthonormalist It’s simply the nation’s trade deficit with us divided by the nation’s exports to us. Yes. Really. Vietnam: Exports 136.6, Imports 13.1 Deficit = 123.5 123.5/136.6 = 90%" https://x.com/Geiger_Capital/status/1907568233239949431

  Vietnam: Exports 136.6, Imports 13.1 Deficit = 123.5
Taking Vietnam as an example, keep in mind that the trade deficit calculation only uses physical goods.

Vietnam exports low value physical goods to the US. The US sells high value non-physical services such as Microsoft office, ChatGPT, Netflix, Facebook ads, iOS Appstore fees, iCloud subscriptions, etc to Vietnam. Other services include engineering consultants, US tax auditors, US consulting companies, etc. None of these are factored into the formula.

So a country like Vietnam gets royally screwed by this formula. They are actually buying way more from the US than just the physical goods.

If you're Vietnam, it's very hard to "just take it" as suggested by Treasury Secretary Scott Bessent. The formula is flawed in the first place.

If we truly want fair, the formula should be based on total profit of the goods and services sold. Services have much higher margins than physical goods typically.

Re: US Administration announces 34% tariffs on China, 20% on EU

#373

Post by giantg2 »

hayst4ck wrote: post #297

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…

"because inflating our currency to pay for them could result in functionally not being able to import goods required to run our economy."

You can't inflate your currency to payoff a debt that's due in in a different currency. As soon as you inflate your currency, the exchange rate changes.

Re: US Administration announces 34% tariffs on China, 20% on EU

#374

Post by orloffm »

nottorp wrote: post #206
TrackerFF wrote: post #62

From what I understand, de minimis exemption has also been removed. That is a huge, huge deal. It effectively means that all goods imported from China will be slapped with a 30% import tax, as soon as said goods arrive the US border / customs. Usually what happens then, is that the courier will pay that tax, and then bill the recipient later on - as well as charge some fee/fees for the work done. This is why in some…

> This is why in some European countries, that $1 item from China with free shipping can end up costing $10, because you're paying $0.25 in VAT or import taxes, and $10 to the shipping courier for doing the paperwork. Not the big China exporters, not any more. They all include taxes in the price on your country specific web site, ship to their warehouses inside the EU, handle taxes and your local courier just deliver…

If I buy something from amazon.co.jp or Apple and it arrives from Japan or China with DHL/UPS, I don't do anything at all in Poland. It's all transparent, I just get the package for the price on the website.

Re: US Administration announces 34% tariffs on China, 20% on EU

#375

Post by aredox »

ggm wrote: post #87

I think a lot of people assume the economic consequences like these have not been understood by the WH. Although I don't like this administration I beg to differ: they know what's going to happen, and they expect the coming storm because they seek what follows. They want to repudiate foreign held debt, or devalue it, by revaluation of the USD and they will wear what they think of as a one time economic shock to get t…

"The king is walking around naked; surely he's got a great reason for that. And his advisors wouldn't let him do it if there wasn't a deeper purpose!"

Re: US Administration announces 34% tariffs on China, 20% on EU

#376

Post by omnee »

hayst4ck wrote: post #297

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…

The Trump admin wants to devalue the dollar substantially, enact protectionism and maintain its reserve status. I can see them succeed with the latter two, but with these actions, the world has no choice but to move away from the USD as the reserve currency. It will take many years, but whatever replaces it certainly won't be to the US's advantage.

Re: US Administration announces 34% tariffs on China, 20% on EU

#377

Post by TrackerFF »

doener wrote: post #225

"This guy cracked the tariff formula: @orthonormalist It’s simply the nation’s trade deficit with us divided by the nation’s exports to us. Yes. Really. Vietnam: Exports 136.6, Imports 13.1 Deficit = 123.5 123.5/136.6 = 90%" https://x.com/Geiger_Capital/status/1907568233239949431

...and every country USA has a positive trade with, will get slapped with the 10% tariff. Every country on the table Trump posted, that have received the 10% tariff, the US have a positive trade with.

No winners in this one.

Re: US Administration announces 34% tariffs on China, 20% on EU

#378

Post by pontiacbandit8 »

Trump must be a Russian asset. There can be no other explanation. To weaken NATO, remove U.S. dominance by withdrawing forces from bases worldwide, abandon maritime security, weaken the dollar, and implement hostile economic policies that maintain the dollar as the world’s currency, it seems that the final step of “America First” is to make the dollar the sole currency used only in the United States.

Re: US Administration announces 34% tariffs on China, 20% on EU

#379

Post by ookdatnog »

ryzvonusef wrote: post #253

When americans are angry, they tend to spread that frustration with a shovel on everyone. My country as been hot by 29% tariffs.. I can't say what we did to upset americans, given that we do not compete with any american industry in any substantial way, bu we are bearing the wrath of the wounded american blue collar worker regardless. I wonder what the net effect of tariffs will be in an year, americans are so used t…

In the culture of the contemporary American right, cruelty is a sign of strength and mercy (or even just empathy) is seen as weakness.

Re: US Administration announces 34% tariffs on China, 20% on EU

#380

Post by Draiken »

freddie_mercury wrote: post #300
phillipseamore wrote: post #90

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.

> every time tariffs were raised the local producers increased prices to be just below the imports. 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.

Or, you know, profits.

Capitalists only care about profits.

I live in a country where we have many protectionist tariffs and the locally produced goods are expensive and lower quality compared to imported goods which guarantees profits at the expense of consumers.

I don't understand why people still believe in this day and age that wages will ever increase despite data showing the opposite for literal decades.

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