The Trump administration appears to be moving in a “reciprocal” policy direction despite the significant negative economic consequences for American consumers of across-the-board tariffs on goods coming into the US. However, the EU’s VAT system should not be used as a justification for retaliatory tariffs.
Technically the possibility for businesses to reduce their VAT dues for things they sold by the VAT they paid on things they bought does encourage to buy a local product if its price w.o. VAT is less than the foreign product with the VAT of the foreign country.
The solution would be to not charge VAT on cross border sales, like the EU does for most of them. That is not what the US has in mind though. Alternatively of course the US can pay the VAT it collected on goods that are exported to Europe to the companies who buy them from the Americans. We just tell Trump to do this. The reactions will be fun.
What ?
Do some people really think that the VAT, a domestic “sale tax” applicable on all product bought by individuals is discriminatory against US export ?
Looks like debunking a non existent fake-news :)
Yes debunk is needed as this has been part of some tariff discussion https://www.axios.com/2025/02/15/trump-vat-tariff-europe
The stable geniuses over the Atlantic need some help with thinking
Technically the possibility for businesses to reduce their VAT dues for things they sold by the VAT they paid on things they bought does encourage to buy a local product if its price w.o. VAT is less than the foreign product with the VAT of the foreign country.
The solution would be to not charge VAT on cross border sales, like the EU does for most of them. That is not what the US has in mind though. Alternatively of course the US can pay the VAT it collected on goods that are exported to Europe to the companies who buy them from the Americans. We just tell Trump to do this. The reactions will be fun.