.png.3b3332cc2256ad0edbc2fe9404feeef0.png.8488ab72b8bb2e508209bfe3211b6e08.png)
-
Recently Browsing 0 members
- No registered users viewing this page.
-
Topics
-
-
Popular Contributors
-
1
-
2
.thumb.jpeg.d2d19a66404642fd9ff62d6262fd153e.jpeg)
-
3
-
4
-
5
-
-
Latest posts...
-
29
Crypto tax accountant in Chiang Mai
I still haven't found a tax accountant here in Chiang Mai, time is running out. -
-
0
US tariffs on imports from the EU: a real threat, bluster or a hoax?
I'm eager to see how the announced 25% tariff on goods imported to the US from the European Union plays out. Why? Well, there are a lot of misconceptions surrounding the EU, and many of them caused by the fact that facts and figures related to the EU are often reported only by individual country. Let's try to have a holistic and more realistic vision of the economic relationship between the EU and the USA. First, the truth is that EU has a negative current account balance with the United States. The EU imports more from the United States than it exports. A lot of its imports are services generated by like Microsoft, Meta, Alphabet, Netflix, Airbnb, Amazon, X, etc.. Services are the "new economy" and are an area in which American companies excel. But the US current account surplus with the EU is something that the Trump administration loves to ignore, because it does not resound with its electoral base composed mainly of blue-collar and poorly educated people, who are not typically employed by Tech companies. If the EU imposed tariffs on these services in retaliation to the US tariff, it would spell trouble for the US and especially for Trump's big donors, those who queued up to donate large sums for his inauguration day. Second, a significant part of the EU trade surplus is fictitious. Little Ireland is the EU's second-largest exporter to the United States not far behind Germany and well ahead of Italy, and pharmaceuticals represent its largest export. However, the fact is that most of these “EU” exports are shipments of pharmaceutical drugs manufactured in India. American pharmaceutical companies set up manufacturing plants in the subcontinent and export their drugs to the United States through their Irish subsidiaries, which act as convenient, tax-advantaged intermediaries. The drugs don't even set foot in European ports, as they are uprooted directly from India to the US West Coast to save costs. Introducing a 25% import tax on these drugs would cost Irish taxpayers almost nothing and would heavily penalize American pharmaceutical companies, their Indian subsidiaries, their employees and those who invested in these companies. Furthermore, the EU as a whole is by far the largest creditor of the US Treasury and the largest holder of US dollar-denominated assets. The EU is a market economy and there is no Chinese Communist Party that can whisper to local financial institutions to boycott American securities in retaliation for a tariff, trusting that the suggestion will be implemented in a disciplined way. However, the EU has a central financial regulator (the ECB - European Central Bank) on which the national central banks depend, and which has a certain regulatory power. I therefore can't imagine what would happen to the interest rates paid by the US Treasury if the EU slowed down its purchases, which are currently running at a pace of just under $100 billion a month. And let me conclude with one final consideration: Trump is right when he says that the EU is a tough nut to crack. The EU has no sense of urgency. Threatening to impose a 25% tariff on its products does not ignite the rush to close a deal that we saw with Mexico and Canada a month ago. Any agreement requires the approval of the 27 member countries and their parliaments. A process that takes months or even years. It is built-in stonewalling by design. And for Trump, accustomed to putting pressure on his partners to bend them to his will, in the belief that, by urging them to act in a rush, he can obtain more favorable concessions, this is like being 'screwed', as he described the situation in which he finds himself. -
70
Markets sink as Trump confirms tariffs on Canada, Mexico and China
I cannot do better than to quote @Emdog. "the trade deal Trump complains about that is robbing and destroying US is the one his administration put in effect during DJT Part 1. The deal that was the "envy of the world, that would make all 3 economies grow at an unprecedented rate." as he said boasting of the deal back then Trump tends to blame all on Biden.... why not this time? oh, this was 100% his deal, his baby to replace NAFTA... and I suppose it fitting that this moron shoots himself & US with his stupidity regarding tariffs" If you can't understand that simple post, then there is little point continuing.- 1
-
-
70
Markets sink as Trump confirms tariffs on Canada, Mexico and China
https://www.forbes.com/sites/mikepatton/2024/03/13/excessive-federal-spending-puts-america-on-collision-course-with-insolvency/ US is heading for disaster unless 24,28,32 Presidents fix it. -
31
Thailand Intensifies Crackdown on Illegal Foreign Businesses
Same same a few days of headlines then back to normal. They simply cannot crack down on all the foreign business open these days since the visa relaxations.
-
-
Popular in The Pub
-
.thumb.jpg.b54783ad387f65d779e04f535fcfeee9.jpg)
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now