> Trump commonly mentions that the EU charges a 10 percent import tax on US vehicles while the US only levies a 2.5 percent tariff on European cars coming into the US
That seems pretty significant no? Why do we need German cars anyway?
That seems pretty significant no? Why do we need German cars anyway?
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.
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.