Understanding the Trump Administration's Tariff Methodology
This platform reveals the controversial tariff calculation method used by the Trump administration. The "Trump's Calculation" column represents a disputed economic formula designed to justify trade measures.
The formula: ∆τi = (xi - mi)/xi * ε*φ
Where:
- xi: Exports from the USA to country i
- mi: Imports from country i to the USA
- ε: Elasticity of substitution
- φ: Trade elasticity parameter
Key Insight: This calculation does not reflect actual tariff rates imposed by other countries. It's a unilateral method that economists have widely criticized for mathematical errors and oversimplifying complex trade relationships.
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