Wednesday, May 20, 2026

Tariff rates

Tariffs between Europe and the US can be seen in simple ways by picking one item like cars. Tariffs do not include the VAT which in Europe ranges from 16% to 27%. Prior to Trump Europe charged 10% tariff on US import while the US charged 2.5%. Adding the VAT meant that the US paid in Germany 29% including the 19% VAT while the US only charged 2.5% on European imports. Today the rules are quite different. The US now charges 15% tariff while Europe charges zero percent but they keep the VAT. In other words, the import tax between Europe and the US is basically reciprocal.

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