[eigart]

They are better.

Edit: This is a bit tongue in cheek, but I imagine there's a limited demand for american vehicles in Europe just due to the market fundamentals. Raising tariffs on European vehicles disproportionately harms american consumers. Tesla has a significant production capacity in Europe, probably because it was in demand in Europe.

[rayiner]

But are they better enough that it’s worth exporting jobs and industrial capability abroad?

[eigart]

I think it’s the other way around. US and China is applying a downward pressure on EU taxes and labor rights, and VAT balances it by treating everyone equally.

Keep in mind, a German built vehicle pays VAT on all the imported materials and components too. I imagine that is a significant share.

When most other countries apply VAT, I think the correct counter for the US is to do the same.