16/07/2025
How USA to EU VAT import Tax and Tariffs ACTUALLY work! https://youtu.be/VwlsDvwuiJA
In this video, I share my perspective on a topic often misunderstood in discussions about international trade VAT, or Value Added Tax. As an entrepreneur based in Europe with years of experience importing and exporting between the EU and the US, I explain how VAT actually works and why it is not the trade barrier some make it out to be. I address common misconceptions, including recent claims from Donald Trump regarding VAT and tariffs, and clarify the difference between VAT, customs duties, and trade regulations. I also touch on why European standards affect the import of US food products and cars. This is not a political commentary but a business-focused breakdown to help you better understand international trade dynamics between Europe and the United States.
With the new threats from Trump to raise Tariffs on imports coming from the Europe and more specifically the EU, I thought it was a good time to talk about how the VAT system works. The VAT system in Europe isn’t the trade weapon some make it out to be. It’s a consumption tax that’s reclaimable for businesses, not a hidden penalty on US goods. The real costs come from customs duties, and those vary depending on the product, but they’re generally not as high as people think.
If you’re trying to understand the trade dynamics between the US and Europe, focusing on VAT alone won’t give you the full picture. There are regulations, standards, and tariffs all playing their part and sometimes, it’s just about quality control and safety.
Hopefully, this clears up some of the confusion and gives you a better idea of how things really work behind the scenes.
Timestamps:00:00 - Intro01:07 - Big Disclaimer02:05 - The so called European Free Healthcare02:52 - The VAT system04:40 - European Food and Car Regulations05...
