This chart, from Twitter user @nonagonono, is amazing.
It shows Trump's "reciprocal trade barriers" are no such thing as they ARE NOT RELATED TO ACTUAL TARIFF BARRIERS. Rather, his magic number is half of the bilateral trade deficit (as a share of imports), or 10%.
This is indescribably crazy.
It shows Trump's "reciprocal trade barriers" are no such thing as they ARE NOT RELATED TO ACTUAL TARIFF BARRIERS. Rather, his magic number is half of the bilateral trade deficit (as a share of imports), or 10%.
This is indescribably crazy.
Comments
By Trump's trade logic, this deficit is evidence they're imposing 100% tariffs on the meals I try to sell them. Obviously this is false.
That explains why he doesn't understand anything.
Even crazier is the White House has written what it thinks is a defense of this. I know not everyone speaks economist algebra, so lemme translate: This is muddled nonsense.
Find it here: https://ustr.gov/issue-areas/reciprocal-tariff-calculations
They don't understand what a trade balance & imbalance means
They don't know how to read a graph discussing federal government revenue from tarrifs 1798-2023
I am not sure they know that 2+2=4, let alone what the Greeks mean in that formula
Why was the uninhabited island listed or the US military base?
Why were countries the US has exports more than imports from listed?
Why was Russia not listed?
Beyond the math issues there are more problems
https://www.mining.com/web/trumps-policies-to-spur-further-central-bank-gold-buying/
Sarcasm aside, the only lessons he paid attention to were given by Orban.
1. Trade
2. Tariff
3. Reciprocal
I bet you the answers wouldn’t be what you know them to be. doesn’t recognize a definition of trade that involves money. he expects it to be equal value of soy beans for dishwashers.
Transparently amateurish bullshitting.
https://bsky.app/profile/monarchdiaries.bsky.social/post/3lluwlisp3s26
Hence, Reciprocal tariff rate = trade_deficit / imports * 50%
Reciprocal tariff $$ = trade_deficit * 50%
With a minimum rate of 10%.