Trump’s reciprocal tariffs a ‘double-edged sword’: Sen. Ron Johnson

Trump’s reciprocal tariffs a ‘double-edged sword’: Sen. Ron Johnson

Trump promised the tariffs will bring about "the golden age of America," but economists have warned a recession could happen.

No, that’s not what a trade deficit means – and that’s not how you calculate other nations’ tariffs

To calculate its ‘reciprocal tariffs’, the Trump administration has opted for a crude formula with no basis in trade theory. We are all going to pay the price.

The questionable math behind Trump’s reciprocal tariffs

The formula also takes into account the import price elasticity and passthrough from tariffs to import prices.

Specialists agree that reciprocal tariffs will boost inflation in the United States

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.