Rogé Karma: “Most obviously, the tariffs don’t appear to be based on actual trade barriers, which undermines their entire justification. Contrary to White House messaging, the formula for determining the new rates turns out to have been based simply on the dollar value of goods the U.S. imports from a given country relative to how much it exports. The administration took the difference between the two numbers, divided it by each country’s total exports, then divided that total in half, and slapped an import tax on countries at that rate. The theoretically reciprocal tariffs are not, in fact, reciprocal.”
“The result is that there is no clear or obvious path that countries could take to get those tariffs removed even if they wanted to. Countries can remove all of their trade restrictions and still run a trade surplus. South Korea, Mexico, and Canada, for example, export more to us than they import from us despite imposing virtually no trade barriers.”
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