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Cake day: June 20th, 2023
  • gravitas_deficiency@sh.itjust.workstoWorld News@lemmy.world•The world reacts to Trump's sweeping tariffs: 'No basis in logic'English
    8·
    11 hours ago

    From the article you’re probably referring to:

    DCInvestor’s observation came in response to crypto trader Jordan Fish, also known as Cobie, who also asked ChatGPT using the prompt: “What would be an easy way to calculate the tariffs that should be imposed on other countries so that the US is on even playing fields when it comes to trade deficit. Set a minimum of 10%.”

    A straightforward (if naïve) method is to set the tariff rate for each trading partner equal to the percentage share of the trade deficit relative to that country’s total imports-always no less than 10%.

    In formula form:

    Tariff Rate (%) = max(10, (Trade Deficit ÷ Total Imports) x 100)

    For example, if the US runs a $20 billion deficit on $100 billion worth of imports from a country, the calculated rate is (20/100)×100 = 20%. If the deficit were only 5%, you’d still impose a 10% floor. This method ignores the intricate dynamics of international trade-such as elasticities, retaliatory measures, and supply chain nuances-but it provides a blunt, proportional rule to “level the playing field.” One might implement it in Python like so:

    def calculate_tariff(trade_deficit, total_imports):
  # Calculate the deficit ratio as a percentage
  ratio =(trade_deficit / total_imports) * 100
  # Enforce a minimum tariff of 10%
  return max(10, ratio)

# Example usage:
tariff = calculate_tariff(20e9, 100e9)
# $20B deficit on $100B imports yields a 20% tariff
print(f"The tariff rate should be {tariff}%")

    We are defining trade policy with predictive text. What a time to be alive. Jesus tapdancing christ.