What will the result of the Trump tariffs be?

[Hypatia_Alexandria]

Why does it matter? Probably the same people who would pay the VAT in that country.

Trump seems to genuinely believe that tariffs are a source of free money that will be provided to the USA by the residents of foreign countries; when in fact tariffs are paid by importers on imported goods and the importer then passes those higher costs on to the consumers.

[seer]

To clarify, VAT applies to all taxable goods and servicessold in the UK, whether they are produced locally or imported. It is paid by the consumer. It would apply to both British and US goods equally.
Tariffs only apply to taxable goods and services sourced from outside the country, and is paid for by the importer. It could apply to US goods, but not British.
They are therefore different things, in particular that VAT doesn't give an advantage to UK produced goods, where tariffs do.

It doesn't matter. If you charge an added 20% on an imported American car, that makes it more expensive for the British buyer. It is still an added tax.

[Hypatia_Alexandria]

They are still both taxes on imports, even is the VAT applies in country too.

Tariffs are placed on imports and are not the same as VAT, as the link I provided made clear.

An American importer of single malt whisky from Scotland will now pay a higher import tariff on that whisky. That importer will pass on that additional cost to Americans who buy single malt whisky thereby making them pay more for their tipple of choice. The same goes for any goods that have either been made abroad or have components in them that have been imported from abroad.

Hence contrary to to Trump's ignorant notion it is the American consumer who will pay for these increased tariffs.

[CivilDiscourse]

Tariffs are placed on imports and are not the same as VAT, as the link I provided made clear.

An American importer of single malt whisky from Scotland will now pay a higher import tariff on that whisky. That importer will pass on that additional cost to Americans who buy single malt whisky thereby making them pay more for their tipple of choice. The same goes for any goods that have either been made abroad or have components in them that have been imported from abroad.

Hence contrary to to Trump's ignorant notion it is the American consumer who will pay for these increased tariffs.

The goal of tariffs, in general, is to make imported goods more expensive, so that consumers pick local made goods instead. In other words, instead of the consumer paying for the tariffs, the consumer will choose a different product.

In many ways it's the same way democrats use taxes to push consumers away from products they don't want them to buy.

[seer]

Tariffs are placed on imports and are not the same as VAT, as the link I provided made clear.

Will the VAT add a 20% tax on the imported American car or not? Will it make the American car 20% more expensive - yes or no...

[Hypatia_Alexandria]

The goal of tariffs, in general, is to make imported goods more expensive, so that consumers pick local made goods instead. In other words, instead of the consumer paying for the tariffs, the consumer will choose a different product.

Only if every single component of those different products is being made domestically and at present that is not the case.

[tabibito]

Will the VAT add a 20% tax on the imported American car or not? Will it make the American car 20% more expensive - yes or no...

If the car is wholly imported, it will add more than the increase imposed by the tariff.

[Starlight]

Often a VAT / sales tax is equivalent to a negative tariff, as often it is not charged on the imported item but is charged on the locally produced item.

This difference can occur for various reasons, but often with regard to people buying things on international marketplaces (e.g. Aliexpress, Ebay) and importing them via small packages, it can just be all too hard for the government to try and apply the same VAT / sales tax to the import.

This difference then means the effect of the unequally applied VAT / sales tax is that it's essentially a tariff on locally produced items, that then financially incentivises the populace to buy foreign goods.

In cases where the VAT / sales tax does manage to be equally applied to imports as well as local goods, it then provides no financial incentives to by locally vs foreign, and is like a 0% tariff. It doesn't matter that it ups the price on the goods, the important effect is that its value neutral as to what the source of the goods is.

[firstfloor]

Trump administration officials offered two main justifications for the tariffs, saying they are meant to accomplish the long-term goal of completely reforming the American economy while giving the U.S. increased negotiating power to strike new trade deals.

But, Mr Trump, nobody trusts you to keep a deal, so what value is your leverage?

[Cow Poke]

Trump administration officials offered two main justifications for the tariffs, saying they are meant to accomplish the long-term goal of completely reforming the American economy while giving the U.S. increased negotiating power to strike new trade deals.

But, Mr Trump, nobody trusts you to keep a deal, so what value is your leverage?

You think, mayhaps, he actually reads your posts on Tweb?

[Starlight]

Trump administration officials offered two main justifications for the tariffs, saying they are meant to accomplish the long-term goal of completely reforming the American economy while giving the U.S. increased negotiating power to strike new trade deals.

But, Mr Trump, nobody trusts you to keep a deal, so what value is your leverage?

Indeed. Furthermore, weak nations that would have caved anyway under much less pressure, will cave immediately. Whereas the stronger nations will fight back and harm America.

[Cayenne]

It doesn't matter. If you charge an added 20% on an imported American car, that makes it more expensive for the British buyer. It is still an added tax.

It's a tax (hence the T part of VAT), but it's a fair tax in that it applies to both UK and US manufacturers equally. Tariffs only apply to other countries, and represent an unfair tax, by design.

VAT is similar to sales tax in the U.S.

(We don't have many imported American cars in this country. It's got nothing to do with tax- cars made in Britain are no cheaper on tax for being made in Britain. It's because the roads are too small for the larger American car.
As Basil Fawlty pointed out, English cars have steering wheels.)

[Mountain Man]

Trump Was Right: More than 50 Countries Have Already Contacted White House to Negotiate Trade and Tariffs

[Starlight]

Trump Was Right: More than 50 Countries Have Already Contacted White House to Negotiate Trade and Tariffs

They'll be the less powerful countries who would always have come to the negotiation table anyway without the threat of tariffs. It gains the US nothing it couldn't have achieved anyway.

Meanwhile the more powerful countries will be brainstorming how to hurt the US because of this.

[seer]

Meanwhile the more powerful countries will be brainstorming how to hurt the US because of this.

I guess that leaves your country out....