The Trump Presidency, Season 2

[Innula Zenovka]

Link to Guardian article

 

[Casey Pelous]

I wonder if export tariffs could be a good answer to the genius's tariffs in the Oval Office.
Like 20% export tariffs on everything that is shipped to the USA.. I mean we spoil useful resources to make goods to be shipped over there...

Damn I'm a genius too.

Tarrifying.

 

[Katheryne Helendale]

There's already an EB-5 visa that offers a green card (and thus a pathway to US citizenship) to foreign investors and their families. How does this differ?

This one is gold, has Trump's face and signature on it, and costs millions.

 

[Casey Pelous]

And the hits ................just keep on comin'.*

China responds to Trump’s tariffs by cutting off US supplies of some of the modern world’s vital minerals

* US and Canadian listeners of a certain vintage may recognize the slogan from Boss Radio, a format used by many Top 40 stations in the US and Canada:


Trivia: The voice is none other than the legendary-in-the-biz radio programming wizard who invented the Boss Radio format (and, pretty much, Top 40 radio), Bill Drake.

 

[Katheryne Helendale]

And the hits ................just keep on comin'.*

* US and Canadian listeners of a certain vintage may recognize the slogan from Boss Radio, a format used by many Top 40 stations in the US and Canada:


Trivia: The voice is none other than the legendary-in-the-biz radio programming wizard who invented the Boss Radio format (and, pretty much, Top 40 radio), Bill Drake.

I grew up listening to Casey Kasem and his Top 40 radio shows. Those were the days.

 

[Cindy Claveau]

 

[Bartholomew Gallacher]

Peace nobel price winner wannabe Donald Trump proudly bragging about and showing how some Houthis were killed by a remotely fired weapon.

Don't the play the video if you are triggered by live kill feed recordings...

 

[Innula Zenovka]

Evernote Link to FT article

Evernote Link to FT article

 

[Veritable Quandry]

They appear to be spectacularly clueless. Vietnam offered to remove all tariffs. The Trump administration immediately said they need changes on "non-tariff barriers." Including product safety requirements. And VAT.

They think VAT is a trade barrier. Even when it is applied equally to all goods regardless of source.

They are asking for what would amount to major legislation to rewrite internal trade in other countries in exchange for dropping their extortive tariffs.

 

[Innula Zenovka]

They appear to be spectacularly clueless. Vietnam offered to remove all tariffs. The Trump administration immediately said they need changes on 'non-tariff barriers. Including product safety requiremes. And VAT.

They think VAT is a trade barrier. Even when it is applied equally to all goods regardless of source.

They are asking for what would amount to major legislation to rewrite internal trade in other countries in exchange for dropping their extortive tariffs.

Yes, the attack on VAT is completely misguided. It's a sales tax, applied to most goods and services at the time the invoice is raised, no matter what their origin.

So if a wholesale buys cars from a UK factory, the factory charges VAT, which it later passes on to HMRC, less the VAT it's paid on goods and services needed to manufacture the cars -- materials, parts, energy costs etc -- on the cost of the cars, and then when the wholesaler sells them to a distributor, the wholesaler adds VAT to that invoice and, at the end of the month, pays HMRC the difference between VAT collected and VAT paid, and so on down the line until the end user, the customer, receives the final invoice in the chain.

Same with imports -- the importer pays the VAT on the manufacturer's invoice when the imports enter the country, passes it on when they sell the imported cars to someone, offset the VAT they paid against the VAT they've just collected and pay HMRC the difference, and so on down the line.

There may be some marginal difference to when the monies need to be sent to HMRC but that's all. Doesn't matter the cars are made in the UK, the EU, China or the US -- the VAT regime, which is completely separate from tariffs and import duties, is exactly the same.

There seems, though, to be some resistance to Trump's tariffs from an unexpected source.

It'll be interesting to see how this fight works out.

Link to Guardian article

 

[Veritable Quandry]

It doesn't hurt until it hurts them.

I am fairly certain that the opposition to VAT is because since there has not been VAT applied at earlier stages of manufacture importers end up paying what seems like a larger rate only because they have not done it in smaller steps. But the end rate is the same.

In the US we apply whatever state and local sales taxes are due at the final step and the retailer sends the whole amount to the tax office. American companies aren't used to having to collect a portion of the tax.

 

[Innula Zenovka]

It doesn't hurt until it hurts them.

I am fairly certain that the opposition to VAT is because since there has not been VAT applied at earlier stages of manufacture importers end up paying what seems like a larger rate only because they have not done it in smaller steps. But the end rate is the same.

In the US we apply whatever state and local sales taxes are due at the final step and the retailer sends the whole amount to the tax office. American companies aren't used to having to collect a portion of the tax.

It makes no difference to the importer -- they pay the VAT on the total invoice price of the imported car, in the same way they would pay VAT on the total invoice price of a car they bought from a UK factory, then charge that same VAT, plus VAT on their margin, when they sell the car on to a UK distributor or wholesaler, and each quarter (I think) they send HMRC the difference between the VAT they've paid during the accounting period and the VAT they've collected.

The VAT the importer pays is a surcharge on the invoice amount, same as the VAT they'd pay on an invoice from a UK manufacturer. Then they reclaim it all when they sell the vehicle on.

There might be some very marginal advantage to your cash flow in buying from a UK factory rather than importing the vehicle -- I'm not sure -- but if there is, it will be very marginal indeed.

 

[Cindy Claveau]

 

[GoblinCampFollower]

 

[Veritable Quandry]

 

[Noodles]

Sweet.

*Belches loudly and smashes a beer can.*

 

[Sid]

Where is Big Nurse Ratched when you really need her?

US will impose 104% tariffs on some Chinese goods from tonight, White House confirms
https://www.theguardian.com/us-news/2025/apr/08/trump-global-tariffs

 

[Casey Pelous]

Sweet.

*Belches loudly and smashes a beer can.*

Don't forget to scratch Down Below.

 

[Noodles]

Don't forget to scratch Down Below.

Instructions unclear, getting off now.

 

[Bartholomew Gallacher]