On April 2, the United States declared a national emergency and announced new tariff policies. President Donald Trump officially signed an executive order imposing new tariffs on all imported goods and introducing a reciprocal tariff system for all countries. The plan includes a 10% tariff on all imports and an additional 34% tariff on Chinese goods, which, when combined with the existing 20% tariff on Chinese imports, amounts to a staggering 54% tariff on goods from China.
Trump’s tariff calculations rival elementary school math
The Trump administration’s tariff calculation method is based on a country’s trade deficit with the United States. The formula divides a country’s trade deficit with the U.S. by its total exports to the U.S., resulting in a percentage that serves as the reciprocal tariff rate. However, Trump applies a 50% reduction to the calculated rate, and if the resulting tariff is less than 10%, it is automatically rounded up to 10%.
For example:
In 2023, Vietnam exported $136.6 billion to the U.S. while importing $13.1 billion, resulting in a trade deficit of $123.5 billion. Using the formula, the calculated tariff rate is 90%, which is halved to 45%.
Similarly, India’s reciprocal tariff rate is calculated to be 26%, while Mexico is expected to face a 25% tariff.
Before the introduction of this reciprocal tariff scheme, many research institutions used complex models to predict potential U.S. tariff rates, factoring in weighted tariff rate differences, the impact of value-added taxes, and other economic variables. However, Trump’s simplified tariff formula has sparked widespread international criticism. Critics argue that this approach is overly simplistic, ignores the nuances of global trade, and fails to account for existing tariff levels and other economic factors. More sceptics believe Trump is using ChatGPT to develop his tariff plans, saying he is “running the country on Ai”.
Trump Reciprocal Tariff Schedule
Image source: truth social
Curiously, though, even countries inhabited by penguins have had tariffs imposed on them by Trump.
Elimination of the minimum exemption policy
On April 2, 2025, President Trump signed the latest Executive Order formally eliminating the duty-free de minimis treatment of low-value imports from Mainland China and Hong Kong. The specific policy conditions are as follows:
1. Imports sent by means other than through the international postal network that are equal to or less than $800 in value and qualify for the de minimis exemption are subject to all applicable tariffs and are subject to the applicable entry and payment procedures.
2. all relevant mail items that contain merchandise sent through the international postal network with a value equal to or less than US$800 and that qualify for the de minimis exemption are subject to a tariff of 30% of their value or US$2 5 per piece (increasing to US$50 per piece after June 1, 2025), which will supersede any other tariffs, including those set out in the previous order.
3. Carriers transporting these mailpieces must report shipment details to U.S. Customs and Border Protection (CBP), maintain an international carrier bond to ensure payment of the tariffs, and pay the tariffs to CBP in accordance with the prescribed schedule.
4. U.S. Customs and Border Protection may require any mailed package to be declared in an official manner instead of executing the specified tariff.
5. The Secretary of Commerce will submit a report within 90 days evaluating the impact of the Order and considering whether to extend these rules to packages originating in Macau.
Trump should be ‘loaded’ into a cannon and shot into the sun
EDT, Wed April 3, 2025,Trump downplayed the market reaction to the tariffs, saying “the market will boom,” but investors clearly didn’t buy it, risk aversion ran high, and the dollar suffered a bloodbath, dropping to its lowest level since October 2024, erasing all the gains it had made since Trump’s election.gains.
“If the Dow Joans ever falls more than 1000 “points” in a Single Day the sitting presidentshould be “loaded” into a very big cannonand Shot into the sun at TREMENDOUSSPEED! No excuses!” This ‘quote’ comes from President Trump as the tariff-induced panic Dow Jones Industrial Average fell 1680pts that day. 1680pts, he now needs to fulfill his promise.
President Trump has not had any positive response to the current economic market woes, but he retweeted a tiktok video on truth social admitting that he let the stock market crash on purpose.The content of the video, which claimed that Warren Buffett endorsed Trump for letting the stock market plummet by 20% and that it was a good thing, was proven to be a fake news story and not a good thing for Americans.(Most Americans don’t have pensions and most of their savings are in the stock market as well as other investment markets).
“MY POLICIES WILL NEVER CHANGE.” said Trump on truth social Friday.
07 Apr, 2025
