Trump’s great lie: the principle that the tariffs are calculated | International

Donald Trump is the principle of his computation that he calls “mutual” tariffs. The President of the United States has approved a complex method to find the level of tariff applicable to each country. At the moment of the truth, however, those policies were skipped to the bullfighter and only considered the imports and trade deficit operated by the United States with each country. Although he submitted the formula to be complex with Greek letters, the reality is very simple. The trade deficit is divided between imports. It gives 39% of the European Union, or 67% in China, then divided by two, which is a “kind of” kind of “. Rounding, 20% to EU and 34% for China. Full -Flooded fraud.

The principle of mutual tariffs has a difference between the value of imports and exports, that is, the trade deficit, which is performed with letters in Greek. The necklace feels more complicated, but in fact it is not. Below are imports, multiplying the elasticity of imports in relation to tariffs and elasticity with respect to prices. The first elasticity is estimated in 0.25 and the second is 4. Both are multiplied, the result is 1. Therefore, the remaining in the necklace is multiplied by 1, i.e. imports.

Therefore, to calculate the tariffs, the trade deficit is used with a group of countries or countries with overall imports and is divided by two. For example, According to data from the United States Census Office, The trade deficit with the European Union is 235,571 million and US imports from EU is $ 60,760 million. The division of another person is 38.8% percent, while Trump shows the European Union applied to the United States in his plank. There is nothing from reality. Gradually, by dividing by 39% 2, it gives 19.5%, it is rounded, giving 20%. The same happens to China. The deficit of $ 295,000 million is divided by 438,000 imports, which gives 67.4%, divided by 2, giving 34%, and again rounded.

Countries with the United States commercial surplus or small deficit, 10%of the Universal Basic tariff imposed, with the goal of reducing all The 1.2 billion trade deficit containing the United States last year. Due to the emergency conditions of Mexico and Canada, the emergency conditions of the Fentanil and Immigration they are in 25% tax regime (partially applied), mutual tariffs are not applied. With the formula used, Mexico had 17%”mutual” tariff, but the United States said it applied 12%when it changed the rule.

Senior seats from the Donald Trump government have indirectly accepted that the non -commercial barriers were not measured in the call of journalists on Wednesday. “The model depends on the idea that the trade deficit with a given country is the amount of all unfair trade techniques and the amount of loops.” A government member said under anonymity.

That concept does not support. It is absurd to assume that the trade deficit is no more than a kind of scandal. But, in addition, Trump approved the order of the process. According to the approved resolution, Five aspects are taken into account for calculating the tariffs imposed on each country. First, this country applies to the United States products. Second, anything imposed by the United States companies, workers and consumers is “unfair, discrimination or alien tax, value -added tax.” Third, “concessions and unjust actions and unfair or harmful actions, policies, policies or practices for US companies working in other countries.” Fourth, harmful exchange rates, low -salary costs and other measures that reduce competitiveness to the United States. And fifth, other practice that is considered unfair or unfair.

After all, almost any tariff is possible, but the commercial department has not even attempted to assess the tariffs and non -tariffs for every country. In his day, Trump said he would like to impose on the European Union Targets in response to additional value tax (VAT), Washington commented on a commercial barrier without the foundation. But he did not even bother to put what’s in the equation.

Trump said he lied about the beginning of his speech. “Within a few moments, I sign the historic executive order of mutual tariffs for countries around the world. This means that they do what they do, we will do them, we’ll do them. Very easy.

“We calculate the total rate of their tariffs, non -monetary obstacles and other types of frauds. And because we are very friendly, (…) they charge about half of us, so the tariffs are not interactions, but it is difficult for most countries.”

“I call this type of kind of mutuality. This is not mutual. This is a kind of interaction. What we do is to reduce it to half” he insisted. “My answer is simple. If you complain, if you want your tariff rate to be zero, build your product here in the United States,” he concluded.

In fact, the commercial department has published its method on Wednesday night, which is more complicated than really and cites the book table. Trump has shown a huge report on commercial obstacles, but all this is a posture. “It is like any stupid educational work, in which they make a very silly statement, but hide using Greek symbols,” He wrote Nate Silver Statistic.