1 hour ago, Banana7 said:

You are right. However Trumps tariff calculation is not looking at the absolute import tariff, its looking at the trade imbalance. Here is an example of Trump calculated the rates for each country. In this example, it's for China.

 

This formula is used as a basis for setting tariff rates on specific countries.

 

Using the Formula: Case Study of China

 

To use the formula in context, let's take the U.S.-China bilateral trade relationship in 2024:

U.S. exports to China: $143.5 billion

U.S. imports from China: $438.9 billion

Using the formula:

(143.5 - 438.9) / 438.9 = -0.673 (or -67.3%)

This result corresponds to a 67% tariff increase on Chinese imports, as indicated by the tariff percentage on a chart carried by Trump at the time of the announcement.

 

 

Actually you got the formula wrong. You have to divide the percentage by 2 to come up with the final result. In China's case that's 34%. But there are additional tariffs already levied against China as well.

 

 

5 hours ago, placeholder said:

Well, given that Trump has imposed 10% tariffs even on countries that run a trade deficit with the USA, there isn't a lot of evidence to support that as Trump's goal.

 

Not sure to me trade deficit is the right measure.  Look at the tariffs.  For example some nations produce goods of better quality and lower cost and if the playing field is level they will have a trade surplus.  Assuming they are respecting human rights and international pollution standards then they earned their surplus. 

 

As an example one reason USA might have a trade surplus with other nation is our ability to produce FOOD at a lower cost and in quantity.  And at one point Japan was producing much better cars to USA and earned their sales jump.