[rufus_foreman]

>> Trump's tariffs are 10% of anything

What percentage is VAT in Europe? Typically around 20%? Maybe Trump should enact a 10% sales tax instead of a tariff and then everyone would obviously be completely fine with it, problem solved.

[olejorgenb]

Maybe you should learn how VAT work? If you actually know better then all the economists, explain in detail how VAT is like a tariff instead of repeating this trite lie?

The world wouldn't care if he introduced a federal 10% sales tax (provided it was implemented similar to VAT, ie. non-protectionistic)

[matwood]

> repeating this trite lie

The WH repeats this lie constantly. Anytime they get pushed on the absurdity of tariffs they mention VAT like it's in anyway related. The right wing outlets then amplify and we further dumb down America.

[Hikikomori]

VAT are not tariff, we pay it on domestic products as well.

[ks6g10]

I would presume that EU products sold in the US are charged sales tax already(for those states that have it).

The difference between sales tax and tarrifs is it applies to all products within the same category irrespective of its origin.

[pjc50]

Yes, because that would apply equally to US businesses.

[matwood]

MAGA really has gotten people to believe all the VAT BS. VAT is basically a sales tax for all products. It does not typically advantage import or domestic products.

If Trump wants to implement a 10% sales tax on everything purchased in the US that would not be considered a tariff and no one would retaliate.

[yibg]

At the risk of stating the obvious, most states already have a sales tax.

[Zanfa]

Obviously other countries would be fine with Trump enacting a sales tax / VAT on everything. Why wouldn’t they be?

[rufus_foreman]

Because it would reduce US consumption of their exports. Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports.

[michpoch]

> Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports.

Same way it reduces the consumption of domestic goods? Seems like fair level?

[rufus_foreman]

>> Seems like fair level?

No, it does not seem fair for Europe to take measures to dramatically reduce European consumption of US exports when the US does not take measures to dramatically reduce consumption of European exports. To be fair, the US would need to do something to dramatically reduce US consumption of European exports.

And I happen to know just the guy to do it.

Seems like fair level?

[ks6g10]

I think you have the wrong understanding, VAT is applied irrespective of origin, so the same reduction would apply to domestic products.

To simplify,

US product for sale for £100, then VAT would be £20 ( assuming 20% rate)

UK product for sale for £100, then VAT would be £20 ( assuming 20% rate)

[8note]

it is however unfair that the US takes advantage of europe by mot having proper food and safety standards, not to mentioning using slave and undocumented labour.

same thing with privacy, the US is abusing europe by not having comprehensive privacy standards equivalent to the GDPR. only california is not defrauding the EU

[seanmcdirmid]

> Just as a tax on consumption of up to 27% in Europe massively reduces Europe's consumption of US exports.

Uhm, it also reduces consumption of locally produced goods, not just something imported into Europe. Its like...a sales tax, the only reason it is treated differently from a sales tax at all is because of its more fair rebate system.

[Zanfa]

VAT applies equally to both domestic and imported products, unlike tariffs that apply only to imports.