90 Days Until Luxury Will Become 31% More Luxurious

Sunday, April 13, 2025

Switzerland taxes imports with 8.1%;
good, but rather basic and neither luxury nor much compared to the United Kingdom, which taxes imports with a rock-solid 20% and so makes luxury really luxurious;
just the European Union creates even a tick more luxury for its citizens with a slightly higher tax-rate of 21% for imports;

and so the United States new general tax rate for imports (aka tariffs) of 10% could not be a surprise and is in quite good company; just with the planned increase to 31% it would become undisputed leader of the free and western world again: products that left the sellers warehouse as a normal good at a market-price arrive at the buyers door price-inflated to an unaffordable luxury item -- Adam Smith' "invisible hand" at work; never before luxury was more luxurious.

Ad 20250416: It is quite clear that I can absolutely understand the action of the USA, now. If all others close their market (agriculture, cars, pharma etc) or open it just after payment of an entrance-fee (tariffs, fees, VAT... you name it), then it is logical and reciproke to do just the same. This is happening now and the result will not be bad for all;

Ad 20250811: And here we go. As expected the taxation of Swiss products is effective -- although it seems like the taxing side became a bit nervous and lost control a bit: personal attacks and a last-second rise to 39% instead of 31% look a bit like that. But no one is resentful. And so, now lets see where we are in six months: more US visits to Switzerland -- eventually it is a tourism-booster --, more shipping to HongKong or other 3rd-parties or globally rising prices or even an exit of the US-market? We dont know it yet and the future remains exciting and uncertain, for sure.

The only thing we know for sure now: The USA is leading again. A leader in transforming usual goods to luxury items. Indeed, no other country is luxurizing goods at a rate of 39% now. Not Switzerland (a mere 8.1%...) and neither UK or EU (20%) and certainly not HK (0%, how dare they?).