True, the tariffs were part of a broader strategy against perceived unfair practices. Trade imbalances are complex, though, and often need a mix of policies to address the underlying issues without overly straining relations
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Yes. Trump wants to address past abuse by trade partners of the United States. Between tariffs, VAT, and other regulations, US products were kept out.
The negotiations seek to change that.
It’s interesting to see how the negotiations reflect a push to correct past imbalances. While measures like tariffs and VAT aimed to counter abuses, a balanced strategy could foster more beneficial trade relationships for all parties
What is a VAT? What countries have them?
VAT stands for Value Added Tax—a consumption tax collected at every production stage. It's widely used in the EU and also in many Asian, African, and Latin American countries
Is there a reason why the United States does not have a VAT?
The US tax system relies more on income and sales taxes rather than a VAT, which fits its historical and political context, though debates about reforming tax policy are ongoing
What is the difference between a sales tax and VAT?