[up-n-atom]

My take is that it’s all an illusion. The deal looks good on paper for the US. But EU/Japan/etc. big business will setup subsidiaries in tax haven states such as Texas or Florida and sell back to themselves. Similarly to how US firms used Ireland.

[impossiblefork]

That isn't really possible.

If goods are brought into the US, with tolls paid, and then sold for much more than the assessed value, the goods will probably be seized.

This agreement is certainly exactly as bad as it looks. No one has historically entered into an agreement like this. Not Sweden when it was a tiny country not part of the EU, no country whatsoever.

When a country has been had its goods tariffed the response has always been to counter those tariffs with tariffs on goods with an equal value, so this agreement is completely exceptional.

[up-n-atom]

You’re making it out like it was zero sum prior which it wasn’t and never has. The increased is 5% and the new baseline for taxable goods ie. 15% from the prior 10%. It’s basically the EU equivalent of VAT but without telling the naive American it’s an increased tax on the consumer.

The real news is these investments/purchases and that’s what my comment was about. No other country is investing in the US outside of mining. But to make face you’ll agree and setup a paper mill for manufacturing, as for power/natural resources, buy back through your own entities. Look up the news about foreign mining, they’re up in arms, but that’s exactly what they voted for.

[impossiblefork]

EU firms too pay VAT, so no, it isn't somehow equivalent to VAT.

These investments and purchases look bad, and are bad, but the really bad things is the non-reciprocal tariff, which makes it impossible to invest in EU production that can scale.