#TrumpTariffs What is the tax policy that Donald Trump is applying to countries?
It can be temporarily explained as follows:
Take the trade deficit of the U.S. with a certain country and divide it by the value of that country's exports to the U.S.
Example 1 – Indonesia:
- U.S. trade deficit: 17.9 billion USD
- Exports from Indonesia to the U.S.: 28 billion USD
- Calculation method: 17.9 / 28 = 64%
- Tariff from the U.S. ~1/2 of 64% = 32%
Example 2 – Vietnam:
- Exports from Vietnam to the U.S.: 136.6 billion USD
- Imports from the U.S.: 13.1 billion USD
- Deficit: 123.5 billion USD
- Calculation method: 123.5 / 136.6 = ~90%
- Tariff from the U.S. ~1/2 of 90% = 46%$
It can be temporarily explained as follows:
Take the trade deficit of the U.S. with a certain country and divide it by the value of that country's exports to the U.S.
Example 1 – Indonesia:
- U.S. trade deficit: 17.9 billion USD
- Exports from Indonesia to the U.S.: 28 billion USD
- Calculation method: 17.9 / 28 = 64%
- Tariff from the U.S. ~1/2 of 64% = 32%
Example 2 – Vietnam:
- Exports from Vietnam to the U.S.: 136.6 billion USD
- Imports from the U.S.: 13.1 billion USD
- Deficit: 123.5 billion USD
- Calculation method: 123.5 / 136.6 = ~90%
- Tariff from the U.S. ~1/2 of 90% = 46%$