Tariffs Are Not Reciprocal

The Ministry of Foreign Affairs of Guatemala has confirmed that it is in talks with the United States due to the implementation of reciprocal tariffs that will enter into force on April 5, 2025. These new tariffs, established by the United States government under the administration of Donald Trump, are part of a series of measures to combat the trade deficit and unfavourable economic practices towards the United States. According to the official…

Tariffs Are Not Reciprocal

by Martin Armstrong Armstrong Economics How did the Trump Administration come up with these tariff rates? Why would a nation like Madagascar, for example, with a small economy, be hit with a 47% tariff? Reciprocal tariffs were determined based on America’s trade deficit with other nations. They took each nation’s trade surplus with the US by total exports and divided that number by two, proclaiming we are asking them for half of what they have b…