Peter Navarro says Vietnam's 0% tariff offer is not enough: 'It's the nontariff cheating that matters'
Peter Navarro says Vietnam's 0% tariff offer is not enough: 'It's the nontariff cheating that matters'
The examples of nontariff "cheating" cited by Navarro included Chinese products routed through Vietnam, intellectual property theft and a value-added tax.
Wow it’s super cool how people who don’t understand global economics are running our economy now 🫠
This idiot probably thinks his grocery store is cheating him because he only buys food from them, and not the other way around.
This is why these "zero for zero" offers are going to go absolutely nowhere.
By their own admission, the administration is simply inventing these numbers for "tariffs applied against the US". What they are, in actually, is the US trade deficit against that country as a percentage.
But the thing is, you're never going see an even trade balance between the US and Vietnam while still having trade between those countries, because nothing made in the US is affordable to the average person living in Vietnam.
The only way to get that fictional "tariffs applied against the US" number down to zero is for Vietnam to stop all exports to the US. That means that a whole lot of clothes, electronics and other consumer goods will need to be made in the US instead of being made in Vietnam.
No version of this works out well for Vietnam, and even for the US it either involves prices increasing to reflect the higher average wages and cost of living in the US, or US wages decreasing to the point where you've basically got all these goods being made by utterly impoverished workers in American sweat shops.
I'm not going to say that American consumers exploiting poorer Vietnamese workers to subsidize their own cost of living is a morally good system, but it sure is one that was working pretty well for the average American consumer.
I think the countries that are making "deals" are just agreeing to buying a shitload of some market commodity like LNG. If you need energy anyway, it's a pretty easy way to adjust the "imbalance" obviously that won't work for every country.
Hey, isn't this the fuck that helped attempt to overturn the 2020 election and then ignored Congressional subpoenas and then went to prison for 4 months?
IT IS!!!!
I wonder what his expert source, Ron Varo thinks of this?
Why is VAT so hard to understand for otherwise literate Americans?
Probably because we don't really ever hear it explained
I consider myself pretty well read and I think I know what it means, but I'm making some assumptions. Could you explain it, and why it's a good solution here?
Google is your friend 🙄
https://en.m.wikipedia.org/wiki/Value-added_tax
Simply speaking it is the tax which cost of, could be claimed back on a every stage of the process, so only the difference between the purchasing/manufacturing price and selling price really attracts the tax.
If you buy something for a tenner and £2 vat (total £12) and sell for £15 and £3 vat (total £18) you are only liable for £1 tax, being the difference between the vat you charged and the vat you paid.
When the world finally understands that the only true way this administration believes they can be really fair is to provide all the goods you can crank out and expect nothing in return they will truly understand the depth of these people's understanding of reality
VAT is used in many countries. It's not an ideal system, since it's regressive, but it's none of the US's business.
Navarro's other assertions require evidence. His word is as worthless as Trump's.
Navarro? the same Navarro who makes people up as experts who justify his own mediocre ideas?!
I was about to say, isn't that the Ron Vara guy?
Peter Navarro probably can’t reliably remember how to spell “tariff”