Trump announces tariffs on EU in retaliation to VAT
The president has initiated a process to establish reciprocal tariffs for all, but plans to apply them specifically to target any perceived fiscal, regulatory or commercial barrier
Oh so what Trump is saying is.... stop... buying american products, buy European instead? Okay, will do!
In particular, he aims to target the European Union in response to its value-added tax (VAT), which applies to all products and is viewed by Washington as a non-tariff barrier.
What? This makes no economic sense.
Can someone enlighten me what this is about?
It's Trump. It doesn't have to make sense.
He says something bizarrely stupid in like every speech, and every indication is it's because doesn't know better. Even his supporters know it.
That being said, in this case he probably started with the tariff, and then worked backwards to a vaguely legal justification to keep the courts away.
It's fucking stupid. Most EU countries charge VAT (value added tax) on pretty much everything you buy. It doesn't change based on where the product is made or anything, so it is a level playing field, therefore I don't know wtf Cheeto is attempting to achieve here.
You always need a casus belli to start a war. Nobody said it needs to be a reasonable, logical or even true thing.
I guess we learned by now, that basically nothing Trump says makes economic sense (not for the US in general, that is). That being said: Even though I get used to Trump's insanity, I'm definitely surprised by this one as well.
Did this muppet really say he thinks VAT is a tariff?
Can't make this shit up!
If vat is a tariff, then US sales tax is a tariff as well. This means we are already at tariff wars so no need to change anything.
Isnt a sales tax and VAT literally the same thing? Both sales taxes and European VAT are examples of VAT. (I hope theres no differences im missing).
More importantly, VAT usually applies to all products, regardless of origin. And its not that big of a leap now, from calling VAT a tarrif, to call any form of taxes tariffs (incl. income tax).
"VAT - Vaccinated Antifa Tariff," Musk, probably
You can't make most of his shit up.
are you still shocked after - checks note - 8 years?
I try not to follow US politics too closely, so... yes, a little, every time shit like this makes it to world news.
Drop tariffs on China in response and increase trade with them significantly. Accelerate the global irrelevance of the U.S, basically
what a fucking tool
