- President Trump announced the investigation of VAT as a type of tariff, expanding the tariff wars.
- Companies dealing with VAT on imports or exports should assess their current state and plan for potential changes to supply chains.
- Trump uses tariffs as a central part of his economic plan to increase US production and attract new companies.
- New tariffs were expected to target imports from countries with high tariffs on US goods.
- On 13 February 2025, Trump ordered an investigation into non-reciprocal trading arrangements, including VAT.
- Over 170 countries have VAT systems, and tariffs in response to VAT could affect all products from these countries.
- An assessment of the investigation’s impacts will be provided to the President within 180 days.
- VAT is fundamentally different from tariffs and functions as a domestic consumption tax.
Source: crowe.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
