President Trump is attacking other countries for the tariffs they put on American cars. But he’s also going after the Value Added Tax that most countries charge. Never heard of a Value Added Tax? Here’s a simple explanation of what it is and why Trump has it in his crosshairs.
This is a nice explanation about VAT, and how it is unfair to U.S. producers. I am glad to see President Trump push to level the playing field. He might be the first president to have the guts to make countries eliminate the VAT for U.S. imported goods. A new Corvette should not cost $110,000 in Germany.
John,
Thanks for this. The only thing confusing for me about the VAT is that suppliers get to deduct the VAT they pay when they receive materials/goods. Also, are all the VATs the same percentage all along the process (e.g. 19 percent in Germany)?
Also, can you guys please add a subcategory “Automotive Insights” under the “Topics” drop-down on the website? That would make it easier to find videos like this, rather than having to click on a tag. Thanks!