“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.”
UNILAD
Former President Donald Trump’s newly announced tariffs, unveiled on April 2 as part of his ‘Liberation Day’ economic plan, have raised questions over how the rates were determined. Trump introduced a baseline 10% tariff on most imports, with significantly higher rates for key trading partners, including China (54%), Vietnam (46%), and the European Union (20%).
The Office of the U.S. Trade Representative (USTR) explained that the tariffs were calculated to balance trade deficits. However, financial journalist James Surowiecki has challenged this claim, calling the methodology “extraordinary nonsense.” He argued, “They didn’t actually calculate tariff rates + non-tariff barriers… Instead, they just took our trade deficit with that country and divided it by the country’s exports to us.”
Surowiecki further claimed that Trump’s team ignored trade surpluses in services, making the figures misleading. The revelation has sparked concern among financial experts, with Spencer Hakimian of Tolou Capital Management responding, “You cannot be serious.