Looking at VAT taxes in EU. Here is what I found

Here's a more detailed explanation:
VAT and Exports:
A fundamental principle of VAT within the EU is that exports are exempt from VAT. This means that when goods are dispatched or transported from an EU country to a location outside the EU, the transaction is exempt from VAT.

Refunds for VAT Paid on Inputs:
To ensure that EU exporters are not penalized by having to reflect VAT paid on inputs in the price of their export goods, they can claim a refund of that VAT.

Ok so in this case the Vat actually acts as a subsidy for the EU automakers since they charge full VAT on US imports.

US to EU -$50,000 car cost, add 20% VAT then add 10% import tax = $65,000 landed cost. Total &15,000 EU tax.
EU to US - $50,000 car cost, subtract 20% VAT then add 2.5% import tax = $41,250 landed cost. Total &1,250 US tax. (also deduct any VAT on supplies, parts etc used to build car)

Bottom line they have a tariff of 10% vs our 2.5%
Additionally, they rebate all exports VAT to their companies as the car is not being sold in the EU. They charge US companies the VAT as the car will be sold in the EU. . VAT is how they finance their government. It is understandable they would do this. We do this differently with various other taxes which we have not been charging the EU. (property tax, sales taxes, SSI, Medicad, Medicare, Unemployment, a few others) The new tariffs are an attempt to encompass those other taxes we use to finance our government we do not currently charge. (of course we increased our 2.5% to 10% too)

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A new broom always sweeps clean.

Guess Nancy likes tariffs as well..

https://x.com/ThePatriotOasis/status/190...bRTdg&s=19

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https://youtu.be/ie5IIrB7IdA?si=ruLDhA_ejY1gTwFz

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Guess Nancy likes tariffs as well..

https://x.com/ThePatriotOasis/status/190...bRTdg&s=19

This is refreshing to watch. It harkens back to the old days when politicians were compelled to work for the American people rather than against each other.

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I feel for the EU. They are addicted to paying low US tariffs. Kind of stuck between a rock and a hard place. Raise tariffs across the board and they just pay more for food. Other items get priced out so less VAT and Tariffs collected and not going into their coffers endangering their social programs. Besides every thing we export already pays a base on 10% plus 20-25% vat tax depending on the country. So 30-35% ....

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A new broom always sweeps clean.

The math that they used to decide what rate would be assigned to which country is simple enough that a middle school student can do it, and If other countries believe that we're not just going to change the system next year, it gives those countries an incentive to reduce their trade surplus with us, so we can calculate a lower rate for the next year.
The goal in theory is to zero out all trade surpluses that other countries have with us or, saying the same thing a different way, to zero out all trade deficits that we have with other countries.
The problem is, you will find almost no economists who think that trade deficits matter, almost nobody with any kind of degree in economics thinks that it's important to reduce all trade imbalances. Further, even those who do think trade deficits are important, will admit that tariffs are not really the best tool to fix it. Non tariff barriers would be much more effective at changing trade totals.
Most progressives and liberals will short circuit their thinking there, and say Trump is dumb, Trump doesn't listen to experts, that's the end of the story.
That's not the end of the story. Trump's goal is not actually to "bring jobs back" or "fix trade deficits." While in theory over time, trade deficits could be fixed, and these tariff calculations could reduce down to zero, that would never happen by the end of Trump's term. If Trump can manage to keep these tariffs in place for the rest of 2025, they will raise a significant amount of revenue. He is then going to try to use that significant amount of revenue as an excuse to create new cuts in income taxes. That's his play. That's what Republican candidates for Congress are going to have to defend, unless they can persuade Trump to back off, or persuade enough of their colleagues to override Trump's vetoes and stop the tariffs that way.
The Democrats are going to, correctly, portray this as an attempt to take tax burden away from very wealthy individuals, and put it on consumers, aka less affluent people, instead.
The Republicans, if they choose not to resist Trump, will have to distract the public from the Democrats' arguments, or try to counter them by saying factories are opening, wages are going up, employment is going up, stuff like that. But what if factories aren't opening? What if wages aren't going up?

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My fellow southpaw Mark Brunell will probably always be my favorite Jaguar.

If that's his game plan. This could also be a temporary ploy to even the tables a bit. Unfortunately, no one knows his end game which profoundly affects American traders. If Trump wants to play the long game of returning production to the U.S., our manufacturers will need time to do so. At a minimum 3 years for some industries, which will also require shouldering significant debt to build their factories. However, if he's only playing the short game, American traders can simply ride it out. So now they're in a conundrum: To ride it out or risk the process of building factories.

Trump doesn't want to tip his hand, but he must eventually, or he'll lose the confidence of American businesses and consumers.

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6 Trillion..

https://x.com/LeadingReport/status/19079...CSqxA&s=19

President Trump secured $6 trillion in commitments to America today, Commerce Secretary Howard Lutnick says.

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If that's his game plan. This could also be a temporary ploy to even the tables a bit. Unfortunately, no one knows his end game which profoundly affects American traders. If Trump wants to play the long game of returning production to the U.S., our manufacturers will need time to do so. At a minimum 3 years for some industries, which will also require shouldering significant debt to build their factories. However, if he's only playing the short game, American traders can simply ride it out. So now they're in a conundrum: To ride it out or risk the process of building factories.

Trump doesn't want to tip his hand, but he must eventually, or he'll lose the confidence of American businesses and consumers.

I was the inbound logistics supplier for the renovation of the Buick assembly plant in Flint Michigan in 1984. That was GM's first just in time assembly plant that delivered to point of use docks. The average stay of material in the facility was 4 hours. They tore the entire assembly line out and redesigned it. I began in February and the facility was up and running October 2. GM has 2 idle plants in Flint. The old Buick one I mentioned and a Truck plant. My point is it doesn't have to take 3 years for autos.

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A new broom always sweeps clean.

If that's his game plan. This could also be a temporary ploy to even the tables a bit. Unfortunately, no one knows his end game which profoundly affects American traders. If Trump wants to play the long game of returning production to the U.S., our manufacturers will need time to do so. At a minimum 3 years for some industries, which will also require shouldering significant debt to build their factories. However, if he's only playing the short game, American traders can simply ride it out. So now they're in a conundrum: To ride it out or risk the process of building factories.

Trump doesn't want to tip his hand, but he must eventually, or he'll lose the confidence of American businesses and consumers.

I was the inbound logistics supplier for the renovation of the Buick assembly plant in Flint Michigan in 1984. That was GM's first just in time assembly plant that delivered to point of use docks. The average stay of material in the facility was 4 hours. They tore the entire assembly line out and redesigned it. I began in February and the facility was up and running October 2. GM has 2 idle plants in Flint. The old Buick one I mentioned and a Truck plant. My point is it doesn't have to take 3 years for autos.

Setting that problem aside, you're left with the fact that if running that factory was more economical than running one in Mexico or Korea, they would already be doing it.  Consumers will be paying more for the products produced at that re-opened factory in Flint than they used to pay for the nearly identical products produced at a factory in Busan.

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My fellow southpaw Mark Brunell will probably always be my favorite Jaguar.

I was the inbound logistics supplier for the renovation of the Buick assembly plant in Flint Michigan in 1984. That was GM's first just in time assembly plant that delivered to point of use docks. The average stay of material in the facility was 4 hours. They tore the entire assembly line out and redesigned it. I began in February and the facility was up and running October 2. GM has 2 idle plants in Flint. The old Buick one I mentioned and a Truck plant. My point is it doesn't have to take 3 years for autos.

Setting that problem aside, you're left with the fact that if running that factory was more economical than running one in Mexico or Korea, they would already be doing it.  Consumers will be paying more for the products produced at that re-opened factory in Flint than they used to pay for the nearly identical products produced at a factory in Busan.

A couple issues needed to be taken into account. First back then GM had to fight the union tooth and nail to install robots, now they are welcomed. Both plants have engine plants next to them, so inbound transportation cost there are almost zero. These things alone will drive savings that will offset the wage differential. Add to that the finished good transportation cost savings and it should be pretty close if not an actual savings.

Additionally produced units inside the States will qualify for lower corporate tax rates. That is if they ever codify the tax bill now in Congress.

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A new broom always sweeps clean.

They're falling in line..

https://x.com/EricLDaugh/status/19081750...a1Uzw&s=19

BREAKING - ART OF THE DEAL ALERT: Vietnam official calls Trump, says they want to remove ALL tariffs in deal with the U.S.

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https://x.com/nypost/status/190818335795...ubkDA&s=19

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They're falling in line..

https://x.com/EricLDaugh/status/19081750...a1Uzw&s=19

BREAKING - ART OF THE DEAL ALERT: Vietnam official calls Trump, says they want to remove ALL tariffs in deal with the U.S.

Yea, I have a sneaking suspicion the 10% base isn't going anywhere. Call it a small fee for access to the US market.

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A new broom always sweeps clean.

They're falling in line..

https://x.com/EricLDaugh/status/19081750...a1Uzw&s=19

BREAKING - ART OF THE DEAL ALERT: Vietnam official calls Trump, says they want to remove ALL tariffs in deal with the U.S.

Yea, I have a sneaking suspicion the 10% base isn't going anywhere. Call it a small fee for access to the US market.

Biden was all but crucified for 10% inflation.

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My fellow southpaw Mark Brunell will probably always be my favorite Jaguar.

Yea, I have a sneaking suspicion the 10% base isn't going anywhere. Call it a small fee for access to the US market.

Biden was all but crucified for 10% inflation.

err that is a tariff not inflation. Imported goods are only 15% of GDP currently.

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A new broom always sweeps clean.

Biden was all but crucified for 10% inflation.

err that is a tariff not inflation. Imported goods are only 15% of GDP currently.

That is certainly a difference. We'll see if it matters.

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My fellow southpaw Mark Brunell will probably always be my favorite Jaguar.

err that is a tariff not inflation. Imported goods are only 15% of GDP currently.

That is certainly a difference. We'll see if it matters.

Well if 100% of the tariffs were past on to consumers then the max effect would be 1.5%. Ford and Stellantis  (Chrysler,Jeep) already are not passing on the increase. They are offering their employee purchase plan. The Ford A plan is a pretty sweet deal. Ford is slightly up today...lol  

The cars that are going to have an issue are the German ones. I showed earlier where a $50,000 US car will have a 61k landed cost in Germany after tariffs and fees. A German car 41k cost landed in the US. This is not a new development, Lee Iacocca was bringing it up in the 90's. So the EU needs to workout this 20k difference somehow. Personally it doesn't effect the average person as they will just not buy a BMW, Porsche, VW or Mercedes. Now the affluent people? They are gonna scream...

Oil is now down from the $70's a barrel to $61.  The 10 year interest rate has a 3 handle for the first time in quite a bit. 

Tariffs are only one leg of the plan. Like you said we will see. Interesting times we live in no?

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A new broom always sweeps clean.

Taiwan to eliminate tariffs to US..

https://x.com/LeadingReport/status/19089...iw5yw&s=19

BREAKING: Taiwan is offering zero tariffs to the United States in response to President Trump’s tariffs.

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Over 50 countries calling Trump to negotiate..

https://x.com/LeadingReport/status/19089...htvCA&s=19

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Scores of businesses from around the world are planning massive investments in the U.S., shifting production and hiring American workers.
The list grows longer every day:
— Project Stargate, led by Japan-based Softbank and U.S.-based OpenAI and Oracle, announced a $500 billion private investment in U.S.-based artificial intelligence infrastructure.
— Apple announced a $500 billion investment in U.S. manufacturing and training.
— Nvidia announced it will invest hundreds of billions of dollars over the next four years in U.S.-based manufacturing.
— Taiwan Semiconductor Manufacturing Company (TSMC) announced a $100 billion investment in U.S.-based chips manufacturing.
— Eli Lilly and Company announced a $27 billion investment in domestic manufacturing.
— United Arab Emirates-based DAMAC Properties announced a $20 billion investment in new U.S.-based data centers.
— France-based CMA CGM, a global shipping giant, announced a $20 billion investment in U.S. shipping and logistics, creating 10,000 new jobs.
— United Arab Emirates-based ADQ and U.S.-based Energy Capital Partners announced a $25 billion investment in U.S. data centers and energy infrastructure.
— South Korean automaker Hyundai announced a $20 billion investment — including $5.8 billion for a new steel plant in Louisiana, which will create nearly 1,500 jobs, amid their pledge to “further localize production in the U.S.”
— Merck announced it will invest $8 billion in the U.S. over the next several years after opening a new $1 billion North Carolina manufacturing facility.
— Clarios announced a $6 billion plan to expand its domestic manufacturing operations.
— GE Aerospace announced a $1 billion investment in manufacturing across 16 states — creating 5,000 new jobs.
— Stellantis announced a $5 billion investment in its U.S. manufacturing network — including re-opening an Illinois manufacturing plant — as it pledges to increase domestic vehicle production.
— Schneider Electric announced it will invest $700 million over the next four years in U.S. energy infrastructure.
— GE Vernova announced it will invest nearly $600 million in U.S. manufacturing over the next two years, which will create more than 1,500 new jobs.
— London-based Diageo announced a $415 million investment in a new Alabama manufacturing facility.
— Dublin-based Eaton Corporation announced a $340 million investment in a new South Carolina-based manufacturing facility for its three-phase transformers.
— Germany-based Siemens announced a $285 million investment in U.S. manufacturing and AI data centers, which will create more than 900 new skilled manufacturing jobs.
— Paris Baguette announced a $160 million investment to construct a manufacturing plant in Texas.
— Switzerland-based ABB announced a $120 million investment to expand production of its low-voltage electrification products in Tennessee and Mississippi.
— Saica Group, a Spain-based corrugated packaging maker, announced plans to build a $110 million new manufacturing facility in Anderson, Indiana.
— Paris-based Saint-Gobain announced a new $40 million NorPro manufacturing facility in Wheatfield, New York.
— India-based Sygene International announced a $36.5 million acquisition of a Baltimore biologics manufacturing facility.
— Asahi Group Holdings, one of the largest Japanese beverage makers, announced a $35 million investment to boost production at its Wisconsin plant.
— Honda is expected to produce its next-generation Civic hybrid model in Indiana.
— Nissan is considering moving production from Mexico to the U.S.
— Rolls-Royce is expected to shift production to the U.S. and expand its domestic workforce.
— Volkswagen is considering shifting production of the high-end Audi and Porsche brands to the U.S.
— Volvo is considering expanding its U.S.-based output.
— LG is considering moving its refrigerator manufacturing from Mexico to Tennessee.
— Italian spirits group Campari is “assessing the opportunities to expand its production in the U.S.”
— Swedish hygiene product manufacturer Essity is considering shifting production to the U.S.
— Taiwan-based Compal Electronics is considering a U.S.-based expansion.
— Taiwan-based Inventec is expected to expand its manufacturing operations into Texas.
— LVMH, a French luxury giant, is “seriously considering” an expansion to its U.S.-based production capabilities.
— Cra-Z-Art, the biggest toymaker in the U.S., said it will move a “large percentage” of its China-based manufacturing back home.
— Prepac, a Canadian furniture manufacturer, announced it will move production from Canada to the U.S.
— Lear is considering moving its production to the U.S.
— Half of Japanese companies say they’ll boost U.S. investment, largely due to tariffs

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