Trump’s massive ‘reciprocal’ tariffs upend global trade | CNN Business
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Despite rattled financial markets, threats of retaliation and some of President Donald Trump’s biggest supporters encouraging him to back off his signature economic policy, he didn’t give in. His administration piled on heaps of new “reciprocal” tariffs Wednesday on dozens of American allies and adversaries alike, aiming to — as he claims — restore fairness and boost American manufacturing.

Summary

Donald Trump imposed sweeping “reciprocal” tariffs on dozens of nations, including a 104% levy on Chinese goods, claiming to boost U.S. manufacturing.

These tariffs, calculated by dubious trade deficit formulas, hit major trading partners like the EU, Japan, and South Korea.

Economists warn of rising inflation, recession risks, and potential stagflation. JPMorgan estimates a 60% chance of global recession, while U.S. consumers may face $2,100 in added yearly costs.

Despite retaliation threats, Trump refuses to back down. Businesses and allies express concern over economic damage and trade instability.

  • HamsterRageEnglish
    11·
    5 days ago

    That number is supposed to be how much of the tariff that the exporter passes through to the importer. Essentially this is a measure of how much the producers lower their profits to lower the price to compensate for the tariffs. In other words how much the producer “pays for” the tariffs.

    This factor is “backwards”, in that it doesn’t represent how much the producer swallows, but how much they pass on to the importer. Trump’s calculations assume that the producer only passes on 25% of the tariff price increase, but the experts say the number should be much closer to 95%.

    I have to idea what “4” means.