Summary
Trump’s tariff formula, based on trade deficits divided by export values, has imposed disproportionately high tariffs on poor nations, with Madagascar facing 47%, Lesotho 50%, and Cambodia 49%.
Critics say the method unfairly punishes countries that import little from the U.S. and lacks credible economic basis.
Rich countries like EU members are also affected, with a 20% tariff branded a “colossal inaccuracy.”
Economists and trade experts question whether this mechanical approach leaves room for negotiation, warning it strains alliances and undermines global trade norms.
The stupidity of the formula when they have access to sone of the best central banking economists and economic models in the world does shock me.
Clearly they’re not leveraging anyone credible to do this. Even if it’s a terrible idea, flying it blind is even dumber.