ricardo marty wrote:It's a reciprocal tariff. It's a response to the tariff that comes its way.
Trump's tariffs are not "reciprocal" at all. Trump's "formula" looks at the trade imbalance between the U.S. and country X, without respect to any other consideration (what they produce, what we produce, whether there's a demand in either country for the products of the other, whether country X has the means to buy "American", etc.) and decided to make up the difference with a tariff.
One result is absurdly high tariffs applied to exceedingly poor countries, which will *never* be able to import as much as they export to the U.S.. A good example is Lesotho, which makes denim for jeans for U.S. manufacturers. It now faces a 50% tariff, because Trump insists they have to buy from us as much as they sell. Maybe he wants them to buy his $399 Trump-branded sneakers? Or maybe his $60 bible, since the sneakers would be nearly 6 months wages in a country with under $1000 per capita income?
Meanwhile, entire industries in the "first world" are "pausing" (i.e., shutting down) because they have no idea whether they'll be able to get parts and supplies.
Interestingly, some economists asked Chatgpt and Claude AI, etc., what "they" would do to "fix" tariffs, and they came up with Trump's lunatic formula. So we know where he got it....