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How were Donald Trump's tariffs calculated?

  • The Trump administration's tariff calculations were based on a simple formula involving trade deficits and exports, not on reciprocal measures, as claimed by various economists.
  • Economist Mike O'Rourke noted that the policy targets countries with significant trade surpluses, while not using existing tariffs in its calculations.
  • The tariff rate for China was calculated at 67%, which Trump halved to 33.64% for a 'reciprocal' tariff, impacting US-China trade relations severely.
  • Australian economist John Simon criticized the tariffs, likening them to deceptive pricing tactics and suggesting they do not reflect the true value of trade.
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Financial Express broke the news in Uttar Pradesh, India on Thursday, April 3, 2025.
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