The simple or perhaps infantile "math" that determined the new tariff rates

[againstthegrain]

Read it and weep

NYT- "new tariffs on more than 100 countries used the same simple formula to calculate the rate for each of them.

The formula’s central value is the trade deficit, the difference between imports and exports between each country and the United States, for the year 2024."

 

[Warrigal]

Read it and weep

NYT- "new tariffs on more than 100 countries used the same simple formula to calculate the rate for each of them.

The formula’s central value is the trade deficit, the difference between imports and exports between each country and the United States, for the year 2024."

Well, Australia imports, in money terms, more than we export to US. We also have a negotiated Free Trade Agreement (FTA) with US. Nevertheless, we have been hit by the arbitrary 100% tariff on all Australian products exported to US. In other words US has a trade surplus with Australia. (Did I get that right?)

The feeble excuse for this is that, for reasons of biosecurity, certain agricultural products are not allowed to enter Australia. Nothing to do with tariffs at all.

 

[againstthegrain]

Well, Australia imports, in money terms, more than we export to US. We also have a negotiated Free Trade Agreement (FTA) with US. Nevertheless, we have been hit by the arbitrary 100% tariff on all Australian products exported to US. In other words US has a trade surplus with Australia. (Did I get that right?)

The feeble excuse for this is that, for reasons of biosecurity, certain agricultural products are not allowed to enter Australia. Nothing to do with tariffs at all.

It's a barrier to entry for perfectly sensible reasons and as you said the response is arbitrary and capricious.

 

[Teacher Terry]

Sadly we are not only ruining our economy but those of other countries.

 

[Rakaia]

Trust takes a long time to develop and mere suspicion can eliminate it.

 

[smiley]

Read it and weep

NYT- "new tariffs on more than 100 countries used the same simple formula to calculate the rate for each of them.

The formula’s central value is the trade deficit, the difference between imports and exports between each country and the United States, for the year 2024."

too much but never enough heh?

 

[Aunt Bea]

It’s important to remember that trade deficits show how dependent we are on the rest of the world for our day to day purchases.

In a perfect world our imports and exports would be about equal.

This is only the beginning of a very bumpy ride of deals, retaliation, increases, decreases, etc…

 

[MACKTEXAS]

Sadly we are not only ruining our economy but those of other countries.

Yes, and our allies won't likely forget it.

 

[againstthegrain]

What's important to remember is tha

In a perfect world our imports and exports would be about equal.

Seems like a simple objective standard until you spend a few minutes thinking about how to measure "equal." It's hard and that's why they went w the easiest measure they could wrap their pea brains around.

The whole chaotic episode reminds me of the beginning of Desert Storm. We had 3 or 4 days of "shock and awe" where we were quite pleased w our ability to destroy yet eventually spent trillions and 1000's of American soldiers died in a quagmire that actually left us worse off especially wrt Iran. Desert Storm was a manufactured event meant to gain revenge and retribution as this one is. Yet the instigators never seem to feel the pain.