2 ms·
I see how the tariff numbers may have been calculated. But why is it done that way? What is the rationale behind such a calculation? Is this a way to balance th
by rramadass 2y ago
I see how the tariff numbers may have been calculated. But why is it done that way? What is the rationale behind such a calculation? Is this a way to balance the existing trade deficits? How does it work?
Would appreciate you (or anybody else) shed some light on the economics of the thing.
- saberdancer 2y agoIf he used real numbers the tariffs would be so low that it wouldn't make any sense.
- n2d4 2y agoThe label "tariffs charged to the US" is just straight-up wrong, either due to incompetence or malice (likely to justify the high tariffs). But basing the tariffs on import/export ratio makes sense if your goal is to be a net exporter with every country, as it discourages imports until that's the case. It's still somewhat arbitrary though; my guess is that the White House is pursuing that goal mostly for political, not economical reasons.
- sorcerer-mar 2y agoIt's because he thinks trade deficits are somehow a subsidy. He has literally used the terms interchangeably. He's just dumb.
- myvoiceismypass 2y agoI would love to hear the plan on how the US can be a net exporter of coffee with, say, Indonesia (32% tariff). Perhaps we can take the funds from the tariffs and build mass greenhouses?
- bitcurious 2y agoWhy do you think the plan is to export every single good? The calculation is clearly on the total import/export balance.
- dfadsadsf 2y agoWe do not have to be net exporters of coffee - Indonesia can buy US cars, corn and wheat for example to balance trade.
- sorcerer-mar 2y agoAh yes, all we have to do is drive US wages so low that Indonesian wages can employ Americans just as readily as our wages employ Indonesians.
- Qworg 2y agoYou can see the report here: https://ustr.gov/issue-areas/reciprocal-tariff-calculations https://ustr.gov/issue-areas/reciprocal-tariff-calculations Given that both elasticities were set to cancel each other, that's why you get a flat trade deficit/imports calculation. This is, sadly, the way a freshman econ student would calculate tariffs.
- cbovis 2y agoSuggestion that the admin is vibe governing: https://bsky.app/profile/amyhoy.bsky.social/post/3lluo7jmsss2w https://bsky.app/profile/amyhoy.bsky.social/post/3lluo7jmsss...