Johnny Bognor

It depends on whther the dealers buy in pounds or euros. It would be interesting to see if prices have fallen although I seriously doubt it. Unilever were trying to increase their prices to the EU, not reduce them. Look, if you only take the negative impacts of brexit and none of the positives, of course it looks bad. But that's not a realistic or sensible position to take.

This place is littered with people who don't get the basics. Hence the need for simple examples. I can see you don't get it either. So lets get this straight smarty pants. A couple of really easy questions for you... You agree that 10% tariffs on imported components and 10% tariiffs on the sale price of the car equates to 20% increase in the sales price of that car??? You believe that currency movements dont have a positive impact for car exporters or any exporters for that matter???

This place is littered with people who don't get the basics. Hence the need for simple examples. I can see you don't get it either. So lets get this straight smarty pants. A couple of really easy questions for you... You agree that 10% tariffs on imported components and 10% tariiffs on the sale price of the car equates to 20% increase in the sales price of that car??? You believe that currency movements dont have a positive impact for car exporters or any exporters for that matter???

Errr in my worked example I gave you 100% of components imported and it still makes no difference. All you have done is confirm that import tariffs will only partially apply. Therefore disproving your own point. Errr I have been arguing that currency changes have already wiped out the net effect of import and export tax Go back and try again.

Errr in my worked example I gave you 100% of components imported and it still makes no difference. All you have done is confirm that import tariffs will only partially apply. Therefore disproving your own point. Errr I have been arguing that currency changes have already wiped out the net effect of import and export tax Go back and try again.

OK, I think you need a lesson in basic commercials. Your premise that nissan cars will be 20% more expensive due to 10% tarrifs each way, is beyond the realms of failing a GCSE in business studies and shows why people like you are more suited to the public sector. I will let you into a little secret. There are many factors that make up the costs of making a car. The overhead This is the cost of premises, plant, sales, marketing, finance and admin functions. Training, R&D etc etc. I could go on, but if you havent got this by now, there is little point. The vast majority of the overhead does not attract import tax, because believe it or not, they are not imported. The price set for a car has to take account of the overhead as well as the materials etc. Labour The people working on the assembly lines are not subject to import tax. Then there's the paint sprayers, warehouse workers, supervisors etc etc. Industry averages suggest that 21% of the cost of producing a car is attributable to direct labour. Believe it or not, but this does not attract import duty. Components and raw materials These could be subject to import costs, if they are imported. Not all components are imported. For those that are, we would pay, but these only represent a proportion of the overall cost of a car. The imported element would also be impacted by the fall in the £, but again, this only represents a proportion of the cost in making the car. Then once you have taken account of all costs, there is the profit margin you want to make. This is not actually imported, but added to the cost of making a car and is incorporated in the sales price. So your assumption of adding 10% import tax to the whole cost of the car is beyond completely and utterly wrong. I cannot believe you could be so naive so can only assume that you are deliberately talking out of your ar*e and making things up to suit your argument. As for the 10% export tax the other way, which effects the overall price of the car, it has already been more than wiped out by the fall in the £.. this is all before cutting corporation tax. The point can be illustrated with ball park numbers.... The component parts and raw materials account for 50% of the manufacturers price of a car (based on a recent automotive engineers study. It is actually 47%, but i am feeling generous). So assuming 100% of the components were imported on a car that sells for £20k (again i am being generous because not all components are imported), the cost of materials with the fall in the £ and 10% import duty means that the costs would increase by £3k. In order for the manufacturer to make the same £ margin of £10k, the car would now have to sell for £23k, as opposed to the original £20k. Add 10% to the sale price for export and that car is now £25.5k on the continent. Before the referendum (at a rate of 1.4 euro to the £) the price of the car would have been £20k and sold for €28k in Europe. Now, the price of the car is £25.5k to manufacture and export, so would now sell for €28k (based on 1.1 euro to the £) So being over generous by assuming 100% of materials and components are imported, applying import and export taxes fully, applying a generous exchange rate, the EU consumer pays exactly the same and the manufacturer makes the same £ margin. A corporation tax cut would be a net gain for Nissan.

Errr stop making things up. The currency devaluation already covers your hypothetical scenario. But you don't put import tarrifs on them because believe it or not, we can do what we want. The 10% for export would be payable but exports would still be cheaper than pre-referendum. A 10% corporation tax rate is more than just a sweetener...

I've mentioned corporation tax cuts before. More than offsets any WTO tariffs. Sent from my SM-G920F using Tapatalk

We won't get a trade deal. The EU has not got a single one of note yet and will fail (as it is in their nature to fail), to get an agreement. But wanting to remain part of an organisation that can't be rational (by your own admission), seems irrational to me. It makes you ask, who's interests do they actually serve?? Their obsession with a federalist Europe and the single currency has destroyed the lives of millions of young people. Nice idea, but I'm out Sent from my SM-G920F using Tapatalk

Errr the UK is already Kenya's second largest export market for crops. The fact that the EU punishes African farmers has more to do with poverty on that continent. GMs idea would lift an impoverished continent... Sent from my SM-G920F using Tapatalk

Is that the animal feed that is also subject to EU tariffs???? Why are you ignoring the fact that food prices are being kept artificially high? It doesn't require much brain power to recognise that food costs (especially for products that cannot be produced here) could be reduced by removing artificial price barriers post brexit.

Errr we are already importing 40% of our food. Remind me of how this helps UK farmers. Remind me of how zero rating duties on bananas, citrus fruit and cocoa (for example) is going to damage British farms.

Errrr where have I said that there would be no inflation???, After leaving the EU, why would we keep those tarrifs, especially if we could REDUCE the cost of food??? You would only keep them to punish the less well off.... I would prefer to help them

I never said there wouldn't be inflation. I have mentioned 3 or 4% on numerous occasions. What I said was that once we leave the EU, we could significantly REDUCE the cost of food imports by removing the excessive EU levy on agriculture as we won't have to protect french farmers anymore. Meanwhile you are happy for the less well off to continue to pay over priced imported foods ...

Nearly half of our food imports come from outside the EU, which are subject to an average levy of 18%. The rest that comes from inefficient farmers in the EU, could be sourced for less elsewhere. We buy from the EU producers where the tariffs artificially distort the price. Also, the good news for British farmers is that the competing EU equivalents are now more expensive. Therefore, there is an incentive for them to produce more. At the end of the day, the EU is a customs union, which means that it imposes tariffs on imports - such as food - from other countries. By leaving the customs union we will be able to drop those tariffs and thereby have cheaper food. That's one reason why leaving the EU is good for consumers, especially the poor who spend a disproportionately larger percentage of their money on food. So although inflation may be on the rise, this can be offset in other areas.

So you are happy for everyone to pay over inflated food prices (up to 18% more on goods from outside the EU), glad we got that sorted. I guess you were probably overjoyed when the EU destroyed the butter and wine mountains, whilst millions in Africa starved.

Tate & Lyle (Europe's largest sugar processor) were one of the biggest supporters of Brexit. They claim the EU are increasing their costs.

Let them pay tariffs, you know, the least progressive of taxes.. or leave the EU??

It will have an inflationary impact, which could be more than wiped out by removing excessive levies on food. The average EU tarrif on food is 18%. You're harping on about 3 or 4%. Low income families have been getting ripped off and kept poor, just to protect french farmers, over paying for food for years. This could be addressed after Brexit, by removing these barriers we could have cheaper food and help developing countries. So let's get this straight. Are you happy that the poor and low income families have been paying 18% more than they need to?? Are you happy that they will continue to pay 18% more???

It's not my chosen number. It is based on facts, as evidenced by the detail in your article LOL Anyway, you do realise that the EU artificially increases food prices through the use of tarriffs??? For example, A 30% levy is placed on coccoa products. 30% !!!! And to think you're worried about 3%??? Isoglucose has a 604% tarriff. SIX HUNDRED AND FOUR percent!!! Outside the EU, we could offer tarrif free access to african and south american producers and substantially REDUCE food costs. I didnt realise how much the EU have been screwing low income famillies across Europe and how remainers are happy for this to continue!!!

Very very misleading article. Look at the detail in the article: "It comes after figures from the National Farmers’ Union released last year suggested that, by the mid-2040s, the country will only be able to produce enough food to feed 53% of its population." Suggesting something that might happen in 25 years as a fact now, is bordering on an outright lie. Then click on the link: figures from the National Farmers’ Union released last year The detail states... Self-sufficiency in food in the UK has been eroded since the 1980s: about 60% of food currently consumed here is grown here, down from nearly 80% in the mid 1980s, even though more varieties of food previously thought exotic are now grown in the UK. So as confirmed by your article, we DO NOT import most of our food

Intersting analysis on the different social groups who voted leave or remain...

Very misleading unless 40% represents "most". Most of the food consumed here is produced here, as our self-suffiency is approximately 60%. There will be an impact on 40% of food stuffs in the short term, but because of the increase in prices of imported foods, there is an incentive for the farming industry to produce more, so in the medium to long term, we can reverse this. Furthermore, there is choice when buying food and so people will inevitably choose different food/products. Yes they have gone up a bit, but are a long way off the levels a couple of years ago, when pump prices hit £1.40 a litre. Remember that most of what we pay at the pump is duty/tax (around 60%), so the governement do have it in their power to alleviate the pressure of increases. Those on low incomes (i.e. minimum wage) have recently had a pay rise of up to 7.5% as of the 1st October 2016, so this should also help cushion the blow. I'm not saying it's ideal, but it is nowhere near as bad as you are implying.

OK we're getting somewhere. 'Up to' accounts for different opinions of the level of over valuation ... from 9%, 10%, 15%, 19% up to 20%. Who knows the exact level but there is no one out there that thought it was under valued? So at least you agree there was an imbalance. Therefore it would have devalued over time anyway. Therefore inflation would be inevitable. Yes they can play out over the long term, but do you not agree that the longer it goes on for, the more damage is done to our economy??? The more job prospects are hampered?? Agreed a sharp rapid decline is not good, but it's happened now. Sterling needs to find its level and exporters can in effect take advantage of the current situation. Free access and goods that are now up to 20% cheaper in the EU. This is a plus side to the short sharp shock. I have read of prices going up by 3% over the next 12 months. Those on lower incomes have just had a 8% pay rise with the increase in the minimum wage, so should be able to cope with 3%. Middle earners and high earners can absorb it. Some, like the unemployed may be worse off, but with noises about the books balancing being put on hold, there is room for manoeuvre. Not an ideal situation but it's far from as bad as some are making out.

Just Google "sterling overvalued", I am not alone in my assertion. Then dig a little bit to find out why it is bad for the economy. People are still hooked on credit fueled spending binges. Sent from my SM-G920F using Tapatalk