Tariffs rollout and stock market mayhem

[struggle4progress]

1. 'reciprocal' tariffs aren't what they seem: the real story

The massive tariffs that President Donald Trump announced for dozens of trading partners Wednesday were pitched as “reciprocal,” simply aiming to match the tariffs other countries charge the United States.

But the methodology behind Trump’s attempt to rebalance trade has nothing to do with the tariff rate that foreign countries impose on the US.

The Trump administration instead a grossly oversimplified calculation that it said factored in a broad set of issues such as Chinese investment, alleged currency manipulation and other countries’ regulations. The administration’s calculation divided a country’s trade deficit with the US by its exports into the country times 1/2. That’s it.

The president is essentially taking a sledgehammer to address a litany of grievances, using the trade deficit that other countries have with the US as a scapegoat. And the vague calculation could have broad implications for countries America depends on for goods — and the foreign companies that supply them ...

https://www.cnn.com/2025/04/05/business/trump-reciprocal-tariffs-real-numbers/index.html