william-james88 wrote:Dead Metal wrote:Where is this idea that tariffs are the same as VAT come from?
It was in an official document from the
whitehouse:
This approach will be of comprehensive scope, examining non-reciprocal trade relationships with all United States trading partners, including any:
(a) tariffs imposed on United States products;
(b) unfair, discriminatory, or extraterritorial taxes imposed by our trading partners on United States businesses, workers, and consumers, including a value-added tax;
Canada has VAT imposed on imports as well and while I am jealous of Americans not having such a fee in the past, I do concede that it’s fair. Hence why I understand why the US would want to have a similar practice. The reason they aren’t doing it like other countries though (and going with tariffs instead) is because this would be a straight up tax and the whole spirit of the party in power is to reduce taxes, not directly add one to citizens.
But that's not what VAT is, why are you spreading that lie? VAT is on everything that's sold, not just imports. The US equivalent is
sales tax, but unlike most other countries it's not uniform for every state, and decided upon by the Federal government, which is why when you go shopping in the US you have to calculate the final price by adding whatever regional rule exists since labels will only display the net price, wile EU countries will have the full final price.
Germany has 19% VAT on all commodities, and 7% on food and literature.
Not going to quote anything from the link, because it's even more complicated than I previously believed, which rates seeming to change from county to county or even cities?
What you're describing is
import tax/ customs duty is for, and the US has always had that, it's just that the US has a much more generous exemption for private individuals.
US Customs and Border Protection Last Modified: May 14, 2024 wrote:Determining Customs Duty
The flat duty rate will apply to articles that are dutiable but that cannot be included in your personal exemption, even if you have not exceeded the exemption. For example, alcoholic beverages. If you return from Europe with $200 worth of purchases, including two liters of liquor, one liter will be duty-free under your returning resident personal allowance/exemption. The other will be dutiable at 3 percent, plus any Internal Revenue Tax (IRT) that is due.
A joint declaration is a Customs declaration that can be made by family members who live in the same household and return to the United States together. These travelers can combine their purchases to take advantage of a combined flat duty rate, no matter which family member owns a given item. The combined value of merchandise subject to a flat duty rate for a family of four traveling together would be $4,000. Purchase totals must be rounded to the nearest dollar amount.
(shortened, there is more information on the original website)
Mailing and Shipping Goods - Customs Duty Guidance
Unaccompanied purchases are goods you bought on a trip that are being mailed or shipped to you in the United States. In other words, you are not carrying the goods with you when you return. If your unaccompanied purchases are from an insular possession (IP) or a Caribbean Basin Initiative (CBI) country and are being imported within 30 days and sent directly from those locations to the United States, you may enter them as follows:
Up to $1,600 in goods will be duty-free under your personal exemption if the merchandise is from an IP.
Up to $800 in goods will be duty-free if it is from a CBI or Andean country.
Any additional amount, up to $1,000, in goods will be dutiable at a flat rate (3%).
But tariffs are a straight up tax, they are payd for by the consummer. A coumpany that imports goods or raw materials will now have to pay:
+ original item
+ Shipping, handling, insurance
+ customs
+ tariffs that were already in place
+ the new tariffs
The end consumer then gets to pay all that, plus the profit margin and whatever sales tax they have where they live.
And these tariffs are relatory to the following tariffs:
Source for the imageSource for the Data the image is based onThe UK and Switzerland have different rates to the other European countries listed, because they're not in the EU.
Note, these are averages, the Republican's however put on a base 10%, on top of whatever tariff rates already existed, plus the extra tariffs per country on top of those 10%. Note that this does not mean that Americans now pay 30% on imports from the EU.
The 20% is on top of the 10%
So if something is worth $100 the company importing it pays $100 + 10% = 110 + 20% ($22) = $132.
That's 32% on everything from the EU.
Cocks is going to use this as an excuse to kill off the toy business, he already stated that he wants to use this year to refocus Hasbro as a mainly digital content company.
The US is not a manufacturing economy, it's a service, energy and tech economy. The US does not have the infrastructure to turn itself into one in a reasonable pace, China has been focused on this for almost half a century. In the end it will be cheaper, faster and easier to shut down what manufacturing exists in the US and do it all in countries that have that infrastructure and the raw materials and just get hit by one single tariff instead of multiple ones depending on where the raw materials and parts come from.
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