What You Should Know About Trump’s Tariffs
The way the tariff rates are calculated is downright absurd
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U.S. appeared to have divided the trade deficit by imports from a given country to arrive at tariff rates for individual countries.
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For example, U.S. goods trade deficit with China / total US import from China = $295 billion / 439 billion = 67%
Trump may want trade negotiation
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The base 10 percent tariffs will take effect on April 5, while the higher reciprocal rates (above 10 percent) will come into effect on April 9.
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Trump opens door for trade negotiation by saying, ““Likewise to all of the foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon be calling to ask for exemptions from these tariffs, I say, terminate your own tariffs, drop your barriers. Don't manipulate your currencies.”
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"My advice to every country right now is, do not retaliate," Bessent told Fox News. "Sit back, take it in, let's see how it goes. Because if you retaliate, there will be escalation. If you don't retaliate, this is the high watermark."
Most countries have not yet retaliated against Trump's tariffs
China, EU: preparing for further countermeasures
Japan: Considering countermeasures in a "bold and speedy manner."
UK: will work on a trade deal
Mexico: would not pursue a "tit-for-tat on tariffs" but would rather announce a "comprehensive program" on Thursday.
Canada: "going to fight these tariffs with countermeasures" and would "act with purpose and with force."
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