Russia shot itself in the face creating a failed state at its border and destroying trade relations.
The problem created is this: EU firms get shut out of the US, but the US firms that compete with them are not shut out of the EU. Thus the US firms can operate at greater scale and outcompete the EU firms, leading to one-sided job losses having nothing to do with merit.
So I can have a great, well-run EU firm and do everything right, and then I can lose it all for no reason, due to this insane political decision.
If this is the protection the EU offers, then why should I invest my money here? Why should I even live here? Because from this I can only read it as that the commission believes that Americans should have more rights than I do and that I shouldn't be allowed to have a business.
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.
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.
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.
Sad day anyway. France was apparently amongst the sole country which wanted to use the tools specifically put in place to retaliate against tariffs but as usual the German got their way and we end up with a deal which serve only them.
The Union is as good as dead as far as I’m concerned and the terrible thing is that it was probably Trump true goal.
What was the retaliation France wanted?
Anyway, as long as the PPE will be in charge and the comission is staffed with German rejects, the Union will go nowhere. European only have what they deserved. I'm just sad my country is dragged down with the sinking ship.
But the result is the same. It becomes impossible to invest in the EU.
If they refuse to take measures against unfair competition (tariff for the firm manufacturing in the EU, but no tariff for the firm manufacturing in the US), then they're throwing you under the bus and it's not an acceptable use of resources to manufacture there.
You can't trust someone who isn't willing to protect your investment.
Really? If you invest in the EU, you can import the raw materials at whatever they cost, and sell your goods to the world. If you invest in the US, you import your goods at cost + 15%, and can only sell to the US because elsewhere your goods cost 15% more than those coming from the rest of the world.
If it was a VAT, that doesn't happen because everyone gets to claim the VAT back on the cost of goods, and exports don't have VAT levied. But this is a tariff.
We can't assume that the US will hamper its industry for no reason, or that its raw materials industries will forever be inefficient.
That's impossible. Goods manufactured in the US will cost way more than that. The minimum wage in Vietnam is under $1 USD per hour, while in the US it ranges from $7.50 to $15 USD. So unless the product is manufactured by robots (which defeats the point of tariffs), products manufactured in the US will be around 10x more expensive than those manufactured in Asia.
aborsy•6mo ago
lewisleclerc•6mo ago
jfengel•6mo ago
It's only possible to have tariffs now because people don't grasp the consequences. When prices go up, the tariffs will be less popular.
breadwinner•6mo ago
US manufacturers will get used to decreased competition, which will lead to poor quality and decreased innovation.
Smuggling will increase, particularly from Canada. Instead of going to the Apple store to buy your next phone you will agree to meet a stranger in a dark alley and pay cash to buy a smuggled iPhone.
The tariffs will be felt by poorer Americans while the rich will barely notice.
mensetmanusman•6mo ago
breadwinner•6mo ago
tnt128•6mo ago
pzo•6mo ago