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Trump just scored an own goal, China is a socialism-based government-controlled economy where rulers are not elected, they can hold foreeeeeevah!
If this passed as it’s being discussed, manufacturers would either build assembly facilities in the US or ship cheat bikes with displacements undefined (ie a bike would ship with no top end and the dealer would install at set up).
At least we still have Cannondale.
American cars are a value compared to European. They aren’t designed or built the same but, the EU imposes fees that raise them to the same cost. This removes the cost value advantage US vehicles have and makes them bad purchases. When a European says that US vehicles are bad they are right, if a Mustang GT costs the same as an M3 the GT is a bad purchase. I own a Boss 302 and I love it but, apart from performance it is a sub par vehicle compared to an M3.
In 2006 I purchased an American 2dr Focus SE for about $11,000. The UK sales person told me that he bought a similar one in the UK for approximately the equivelant of $21,000. The car was good and I liked it but, I question if it was really an $11,000 car to begin with. Where is that massive tax going that the EU was charging on the US car?
When I see a Euro that owns an American product I understand that they paid dearly to own something American and I appreciate their belief in America but, we are not the EUs personal benefactor.
These tariffs are important and I support them. It is time we started playing by their rules. If they want access, which we guarantee, there needs to be fairness.
A $1,000 add on on a 50% off purchase (3,500 euro) is massive. If you are against the proposed tariffs, defend the EUs right to that.
https://www.trade-tariff.service.gov.uk/trade-tariff/headings/8712?day=…
It’s generally the same EU import duty rate wherever the product in question is manufactured, although occasionally certain countries might be assessed higher or lower duties on some products. That’s what’s under discussion for the US right now.
I used to import floppy discs from China and at one stage there were even different EU import duty rates (well, actually ‘anti-dumping duty’) for different factories within China.
VAT (sales tax) is a different thing, and and is charged at point of sale, not import. In the UK it’s 20%. (I’m not sure if other EU countries have different rates). If the vehicle/product is being exported back outside the EU you don’t in theory have to pay that VAT. (‘Tax free for export’, as you might see in certain places) although most retailers won’t know to process that exemption. VAT is, I imagine, the 20% you didn’t pay on your Cannondale.
Here in the UK we pay much higher prices for most things. With American cars we pay way more than they would be in the US. iPhone X’s are £1000 here, and only $1000 in the US (although US list prices are ex-sales tax). It’s still a big difference - 30% or so more here. It’s explained away as being down to duties and currency fluctuations but that’s BS. They just charge more here because they believe the UK market will stand it. ‘Rip-off Britain’ it’s called...
Fuel is the exception. That is more because of UK additional taxes.
Pit Row
The issue that we are discussing here is tariffs. Those are set and factual, despite your claims otherwise.
As for the price differences, I'd love to see an actual $30K car in America priced at the equivalent of $70K+ due to tariffs. Exactly equipped, of course.
Even on your bicycle example, I have a hard time believing that you aren't talking about a lesser equipped SuperSix in the States, and a level or 2 higher in Germany. Hard to say.
But the tariff rates are published and open, and the 10% tariff on that well equipped Ford Focus isn't the driving factor for it being an alleged $70K car in Europe.....
the US wholesale/retail market seems to operate on lower margins than the EU/UK, and way better than NZ or Australia, my guess is size of the market is a major factor,
The bike is a S6E disk H-M. It isn’t high end but also not mid.
Let me see what I can find on your car challenge.
So starting with the 30% discount, the "sale" price of the bike would be about €4550. I wouldn't reduce that sale price any further because it's a tax that you are exempt from, and our sales taxes here vary greatly from area to area as well so we won't add that on as a cost, either.
So now you are paying €4550 for the bike, which you claim is about $1000 over the regular price of that same bike in America, or about $7500.
But it isn't. The actual cost, based on average exchange rate for January 2018, is right around $5500, which is actually about $1000 less than the MSRP in the US.
So perhaps your first hand, anecdotal experiences aren't quite what you believe them to be ............
How are you coming on that $30K car in the US that sells for $70K plus in Europe?
I can then support my mx habit.
Post a reply to: 100% tafiff on Euro Dirt Bikes is insane