Economists Flabbergasted by White House Tariff Calculation Methods

New US Tariffs Announced

• 🎯 A baseline tariff of 10% is applied to all countries, with an additional reciprocal tariff for approximately 60 nations deemed "worst offenders."
• ⚡ China faces a 34% tariff, and the EU faces a 20% tariff, though clarity on whether these are on top of existing tariffs is pending.
• 🚗 Specific sector tariffs are expected, including for semiconductors, copper, pharmaceuticals, and a 25% tariff on foreign-made cars.
• 🚫 Tariffs do not currently include Canada or Mexico, though they remain subject to 25% tariffs with some recent temporary exemptions.

Controversial Tariff Calculation Method

• 💡 Economists have expressed astonishment at the White House's tariff calculation method, describing it as "cumbersome" and "clunky."
• 📊 The method reportedly involves dividing the trade deficit with a country by the total imports from that country.
• ⚠️ A senior White House official stated that the situation is a "national emergency" and that non-tariff barriers like quotas and import licenses are a bigger problem than tariffs themselves.

International Reactions and Retaliation

• 🇬🇧 The UK received a 10% base tariff and hopes for a trade deal to reduce it, while the EU faces a 20% tariff, considered a worst-case scenario.
• 🇪🇺 Ursula von der Leyen criticized the "complexity and chaos" but agreed that some countries take unfair advantage, emphasizing Europe's strength and unity.
• 🇨🇦 Canada's Prime Minister plans to fight the 25% tariffs on steel and aluminum and convene a meeting of provincial leaders.
• 🇺🇸 Donald Trump has threatened escalation, potentially imposing 200% tariffs on wine and champagne if a trade war with the EU begins.

Domestic Rebukes

• 🏛️ Republican senators joined Democrats in a bill to block tariffs on Canada, though its passage through the House and to President Trump's desk is unlikely.
• 🗣️ This represents a rare domestic rebuke of Donald Trump's tariff policies on Capitol Hill.