Import tax

Most countries have an import tax but the European Union also has a VAT (value added tax). This tax applied to all products including imports and varies by country from 12% to 17%. In addition the EU places a 10% import tax on cars. This puts American cars imported to Europe at a disadvantage. In 2016, the EU exported motor vehicles worth EUR 192.0 billion. Imports in that same year amounted to 40 % of that value (EUR 77.0 billion), giving an EU trade surplus of EUR 128.2 billion. This is a plan that puts the EU first. The US has a 2.5% import tax on foreign cars and a 25% import tax on trucks. One result is that most foreign trucks are made in the USA. Trump has proposed taxing cars imported from the EU to, as he says, equal the playing field.