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James Surowiecki Just figured out where these fake tariff rates come from. They didn't actually calculate tariff rates + non-tariff barriers, as they say they did. Instead, for every country, they just took our trade deficit with that country and divided it by the country's exports to us. So we have a $17.9 billion trade deficit with Indonesia. Its exports to us are $28 billion. $17.9/$28 = 64%, which Trump claims is the tariff rate Indonesia charges us. What extraordinary nonsense this is. Replying to @JamesSurowiecki It's also important to understand that the tariff rates that foreign countries are supposedly charging us are just made-up numbers. South Korea, with which we have a trade agreement, is not charging a 50% tariff on U.S. exports. Nor is the EU charging a 39% tariff. James Surowiecki Even given that it's Trump, | cannot believe they said "We'll just divide the trade deficit by imports and tell people that's the tariff rate.” And then they decided to set our tariffs by just cutting that totally made-up rate in half! This is so dumb and deceptive.

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James Surowiecki Just figured out where these fake tariff rates come from. They didn't actually calculate tariff rates + non-tariff barriers, as they say they did. Instead, for every country, they just took our trade deficit with that country and divided it by the country's exports to us. So we have a $17.9 billion trade deficit with Indonesia. Its exports to us are $28 billion. $17.9/$28 = 64%, which Trump claims is the tariff rate Indonesia charges us. What extraordinary nonsense this is. Replying to @JamesSurowiecki It's also important to understand that the tariff rates that foreign countries are supposedly charging us are just made-up numbers. South Korea, with which we have a trade agreement, is not charging a 50% tariff on U.S. exports. Nor is the EU charging a 39% tariff. James Surowiecki Even given that it's Trump, | cannot believe they said "We'll just divide the trade deficit by imports and tell people that's the tariff rate.” And then they decided to set our tariffs by just cutting that totally made-up rate in half! This is so dumb and deceptive.
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Kim Scheinberg (kims@mas.to)'s status on Thursday, 03-Apr-2025 08:41:46 JST Kim Scheinberg

This... this can't possibly be true. The stupidity burns. I sold ~15% of my equities over the last six weeks. Should have sold 215%
From James Surowiecki:
Just figured out where these fake tariff rates come from. They didn't actually calculate tariff rates + non-tariff barriers, as they say they did. Instead, for every country, they just took our trade deficit with that country and divided it by the country's exports to us.
[...]
What extraordinary nonsense this is.

In conversation about a month ago from mas.to permalink