Toro
Diamond Member
- Sep 29, 2005
- 109,804
- 50,575
yep.Not quite
Currently, the EU has a 10% tariff on all light vehicles. America has a 2.5% tariff on all cars and a 25% tariff on all light trucks, i.e. pick-ups, SUVs, etc. That's because light trucks are Detroit's most profitable product, and the American consumer - i.e. you - payer higher taxes to protect Detroit's most lucrative market.
Because light trucks are about 60% of the US light vehicle market, the average US tariff on light vehicles is higher than it is in Europe at ~12.5%. IOW the idea that we are getting hosed is simply nonsense. American tariffs, i.e. trade taxes, are higher on cars and trucks than they are in Europe.
Negotiations will center around reducing all tariffs on light vehicles, not just cars.
If you don't believe that trade is a zero-sum game - which educated people know it is not - then reducing tariffs on all vehicles is a good thing because it lowers taxes consumers pay and gives people more choice.
".....One catch is that the Europeans also want a 25% U.S. tax on imports of light trucks—pickup trucks, sport-utility vehicles, and big vans—scrapped. Abolishing this relic of the Johnson administration could alienate U.S. auto workers, a core constituency for Mr. Trump in the midterms this fall...."
LOL.
and this:
"German car makers’ efforts face significant hurdles. Berlin has no power to hammer out trade deals—a prerogative of the European Commission, the EU’s executive body in Brussels—and would have to persuade fellow EU member states, starting with France, to back a radical free-trade approach many have shown little interest in."
LOLOL.
"Government officials in Berlin are cautious about the car makers’ initiative. While they endorse the idea, they say the government already approached the Trump administration with similar proposals weeks ago without eliciting much interest. They also say no talks are currently taking place on trade between Europe and the U.S. as the EU finalizes its response to Mr. Trump’s steel and aluminum tariffs."
LOLOLOL
Over here, you never hear about the tariffs we put on others. Trump just gives half the story and leaves the impression that we are always getting screwed.