re: Switzerland facing 39% US tariff as president leaves Washington empty-handed

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You know, in a perfect world, there would be no need for tariffs... However, we do not live in a perfect world and we never will... These countries have taken advantage of the US for far too long in many areas including trade and it is time that they pay up...

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Sorry, I am against "making up" for the past with actions taken today to "make up". It's the same reason I hate all affirmative action and DEI crap. The right thing to do is simply to enact, as of today, the right policy and that is zero against zero when it comes to tariffs.

There is a difference.

VAT is at each step from raw material to finished product. Hidden as it is, poli's can punish or reward each step as they see fit. This is what makes VAT taxes bad.

Sales tax is typically at the end and not hidden.

By enacting a zero for zero tariff policy, no tariffs on European countries that purchase Boeings and use them like LOT, British Airways, Ryanair, Lufthansa, Turkish Airlines, Emirates, etc.

And no Tariff on American Airlines when they buy and Airbus. Like American, Dellta, JetBlue, Froniter, Spirit and others.

It's just a sneaky way to tax people and not get the government blamed for the tax hike.

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i also don't see how sales tax is not a part of each step of the process in the USA

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If I am a manufacturer and one of my input items, I buy to use in my product, has a sales tax applied, the sales tax I paid is deductible. That is not the case in VAT.

No, it's only single taxation, all the parts of the process just pass it on and on and on, it does not build on itself.

For example, iron ore miner, ten percent VAT. Sold to steel manufacturer to make sheet metal, ten percent VAT. Sold to sheet metal shop to make into metal cabinet, ten percent VAT. Sold to electronic maker as cabinet for device, ten percent VAT. Electronic device sold to consumer, sales tax.

That original VAT was re-taxed how many times? Everyone downstream paid an increase because of VAT, a hidden tax. And anywhere in those steps the poli's can reward or punish, by increasing or decreasing VAT.

No, wrong, if VAT was applied at the start, the is no more VAT put on it again, the "old" VAT just moves along, only increasing by the VALUE ADDED.

LINK

At each step of the production and distribution process (manufacturer, wholesaler, retailer), a business adds value to a good or service. Two by fours - low value - are turned into beds - higher value, value added.

Every business along the production/value addition gets the tax back (a tax credit) when they sell it to the next person or company. Only the final purchaser pays the VAT and gets no credit.

Input VAT: The VAT a business pays on its purchases (e.g., raw materials) is called input VAT.

Output VAT: The VAT a business charges on its sales is called output VAT.

Purchasers, except for the final consumer, recover the input VAT they've paid on goods and services used for their business activities.

This is achieved by deducting the input VAT from the output VAT they've collected from their customers.

The VAT credit system ensures that the tax burden ultimately falls on the final consumer, according to the Tax Foundation. When a consumer purchases a good or service, they pay the final VAT amount included in the price.

Example - Imagine a shirt passes through several stages before reaching you:

Fabric Manufacturer: Sells fabric to a shirt maker for $10, adds a 10% VAT ($1). Manufacturer pays $1 VAT to the government.

Shirt Maker: Buys fabric for $10 + $1 VAT ($11 total). Makes a shirt and sells it to a retailer for $20, adding a 10% VAT ($2).

Shirt maker collects $2 VAT from the retailer, deducts the $1 VAT paid on the fabric, and remits $1 VAT ($2 - $1) to the government.

Retailer: Buys shirt for $20 + $2 VAT ($22 total). Sells the shirt to you for $30, adding a 10% VAT ($3). Retailer collects $3 VAT from you, deducts the $2 VAT paid on the shirt, and remits $1 VAT ($3 - $2) to the government.

You (Final Consumer): Pay $30 + $3 VAT ($33 total) for the shirt. You bear the entire $3 VAT cost.

In this example, the government receives a total of $3 in VAT ($1 from the fabric manufacturer + $1 from the shirt maker + $1 from the retailer). This demonstrates how VAT is collected incrementally throughout the supply chain but is ultimately paid by the end-user.

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Because he can. We don’t need you, you need us. It’s called a position of strength

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This is just plain dumb: Trump who I hv supported is just being as azz! You never know when you need someone’s support down the road.

I trust the process. Took us 40 years to get into this mess and he’s trying to resolve it within 2 years.

But I will say that the tariffs have been a nightmare for my company. Things moved fast and often for us.

Not really the financial hit so much (we do a lot of domestic manufacturing) as trying to figure out what the duties and tariffs are for things within the supply chain when Trump makes adjustments, which is often.

Hopefully things get static soon so we can actually make longer term sourcing and production decisions.