Trump's 'Reciprocal Tariff' Math: A Masterclass In Economic Absurdity
32 Articles
32 Articles
Why Economists Are Horrified by Trump's Tariff Math
When President Donald Trump initially announced his new tariffs in February, he proposed them as a “fair and reciprocal plan on trade.” And so it was assumed that these reciprocal tariffs, as they are known, would be equal in value to the taxes that foreign countries have set against U.S. goods. [time-brightcove not-tgx=”true”] In fact, the tariffs unveiled on Trump’s April 2 “Liberation Day” were slightly more complicated—and for some economist…
Fact-checking Donald Trump’s tariff plans
President Trump announced his ‘Liberation Day’ reciprocal tariff package, in a move that’s set global economies into panic and stock markets into turmoil. But Trump said several falsehoods - many that he’d made before - and economists are baffled as to the White House’s methodology to calculate the exorbitant reciprocal rate. Vedika Bahl explains in Truth or Fake.
Is the "reciprocal tariff" rate a simple division? The Japanese government is also confused by the negotiations
The "reciprocal tariff" rates announced by the Trump administration on the 2nd are suspected to have been determined through a simple calculation based on the US trade balance figures for 2024. There is a strong possibility that the figures were based on the "trade deficit amount" divided by the "import amount," and other countries are likely to oppose the sloppy methodology.
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