Trade war coming between allies...
 

Ok here's the skinny:

Trump imposed a 220% tax on bombardier aircraft from Canada, the UK has a significant steak in Canadian bombardier and so does Ireland...Teresa may is pissed...she says it is not free trade, even though bombardier is supported by the UK and Ireland from the budget...now Boeing is feeling the heat because the UK has threatened to cancel large orders because they are pissed...

This is what trump and Paul Markham do not understand...there are always consequences...

you think so?

I don't support FREE TRADE, but I do support FAIR TRADE.

The problem with fair trade is that nobody tells you the whole story when passing legislation. Just enough to support whatever special interest is paying for.

So it becomes a term that is FAIR TO WHO ?

Someone else makes the money and you pay the bill.

I might add that the US has much more protectionist programs for a long time.
Like sugar.... Sugar would have been pretty cheap if not for the import tariff.
And we could be making ethanol from it instead of corn and is much more efficient in it's production.
Instead, we pay higher prices for most food & everything else so we can make it from corn.
Go figure.

Remove the tariff and make ethanol from sugar cane. Will never happen.

Imagine if Canada started putting a 220% tariff on the goods they ship to us. Don't think that's an issue? What percentage of YOUR next car is made in Canada?

Sanction!))

Notice how Trump the chump shut up about trying to force Mexico to pay for the wall by taxing money sent back to Mexico? ( it was gonna be SOOO easy to make Mexico pay for it he claimed)

Someone must have had to sit down and have a talk with him, to inform him that many, many US goods come through Mexico and Mexico could easily slap a tariff on all goods they import to the US.. Trump is a fool who only seems to see one side of every coin.

With trade wars today, no one wins. We are global economy for good or bad so everyone even the smallest player can have effect.

Chump & Red Hats are just too stupid to understand that the US can't just push everyone around and force them to bend the knee because MERICA. The right wig is full of stupid fucks who think that way and they give the rest of us a bad name..

Trump's problem is that he sees everything as a zero sum game. He wins and everyone else loses.

There's nuance to trade deals that he'll never be able to understand, because he only sees black and white.

Looks like Trump is going to get his wall after all :thumbsup

Glad to see you're starting to warm up to Trump :thumbsup:thumbsup

Canada has threatened to cancel a multi-billion dollar contract for the purchase of F-35 planes in retaliation.

Petty arguments with neighboring countries is plain arrogant and is in direct conflict with national security interests. A cooperative North America is in everyone's interest.

<= angry orange with a Napoleon complex.

Are you dumb? Serious question?

Free trade? Doesn't UK have a VAT? It's free trade to her. VAT trade for us.

.... then making it more feasible to manufacture the goods in the US. The world does not need Mexico for anything except cheap labor. Thus there will be no tariff. They know cheap goods from their cheap labor is all they've got.

And the US has sales Tax.....

Therefore what ?

it does not work like that...you are doing a "paul markham"...producing domestically makes you un-competitive and with the mutual tariff imposing you are now double un-competitive...

Thanks, for putting Paul Markham on the world stage ! :helpme

US state sales tax averages 6% or 7% and here in MI; food, medicine, services/labor, books and newspapers, tuitions, property rental are exempt.

That is a big difference from the VAT tax in the UK and Europe of 18% to 27% -- like 3 or 4 times as much and on almost all goods and services. Taking the taxation of the seller's labor also ... the costs on the GDP is even higher.

Some countries have reduced VAT for foodstuffs like Holland but in France the VAT is full rate on food.

Under the state sales tax rules purchases of goods for businesses not for resale or materials used in *industrial processing* are taxable as end user purchases.

You are comparing apples and oranges -- they both grow on trees and are fruits -- they are both consumption taxes but the similarities end there.

... and Boeing does NOT produce/manufacture a plane of the size/capacity/range of the Bombardier C-Series .... :1orglaugh:1orglaugh:1orglaugh

Trump is just being an asshole -- that is the one of things he is good at.

I wasn?t comparing the 2. I was just pointing out that countries level sales taxes and that has nothing to do with the accusation of state subsidies that the US is getting its knickers in a twist about.

State aid at this level of investment is very widespread - countries and even states bid for companies to build a new manufacturing plant in many different ways. A few billion on ?infrastructure? and a few more billion in tax breaks on R & D, followed by a massive order from the govt or state for the new plane/micro chip/aircraft carrier.

The rules of this game are a lot more sophisticated than Trump. The UK buys enormous amounts US tech and weaponry that Boeing Lockheed et al do not want to lose to some petty trade skirmish. The UK/US trade relationship will exists long after the Orange buffoon is gone, and this nonsense is just another sideshow like Pence leaving the football game, its all about trying to show what a tough guy he is, and to cover for the lack of actual achievement since he slithered into office.

:2 cents:

what a hell have global trading to do with VAT ???

there is no VAT in B2B trading

i am very interested to hear your solution for that, genius.

that's the funny part, it isnt even competition to Boeing

now the airline either has to operate at a loss cause they need to buy bigger planes at higher cost and also higher operational costs - or drop those connections

and than wait til trump puts a high duty on imports from asia - that will be a REALLY funny lesson for all those economy professionals here.

MAKE AMERICA POOR AGAIN would have been a better slogan for trump´s campaign.