Unfortunately the EU has no say in the tariffs that the US charges its own citizens
They can say:
“Since US Consumers can pay 15% more, we’ve decided to implement a 15% export fee to any product to the US.”
That takes the “power” away from trump, he can raise the price as much as he wants but he becomes powerless to lower it.
Almost every “American” product is at best assembled components, and each one of those components can be hit by export fees by the country that makes them.
It’s a very easy movie, almost guaranteed to work, and makes them money. I don’t know why they’re not doing it.
It’s a very easy movie, almost guaranteed to work, and makes them money. I don’t know why they’re not doing it.
Probably because export tariffs make your product less appealing to import compared to other potential competing exporters who don’t collude on an export tax, or the target country who might be incentives to produce domestically instead of importing. Obviously, some industries are more geographically locked than others, but these deals still have knock on effects.
They can say:
“Since US Consumers can pay 15% more, we’ve decided to implement a 15% export fee to any product to the US.”
That takes the “power” away from trump, he can raise the price as much as he wants but he becomes powerless to lower it.
Almost every “American” product is at best assembled components, and each one of those components can be hit by export fees by the country that makes them.
It’s a very easy movie, almost guaranteed to work, and makes them money. I don’t know why they’re not doing it.
Probably because export tariffs make your product less appealing to import compared to other potential competing exporters who don’t collude on an export tax, or the target country who might be incentives to produce domestically instead of importing. Obviously, some industries are more geographically locked than others, but these deals still have knock on effects.