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How were Donald Trump’s tariffs calculated?

In total, more than 100 countries are covered by the new tariff regime.

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Charts credit: White House/ BBC Verify

US President Donald Trump has imposed a 10% tariff on goods from most countries being imported into the US, with even higher rates for what he calls the ”worst offenders”.

But how exactly were these tariffs – essentially taxes on imports – worked out? BBC Verify has been looking at the calculations behind the numbers.

What were the calculations?

When Trump presented a giant cardboard chart detailing the tariffs in the White House Rose Garden it was initially assumed that the charges were based on a combination of existing tariffs and other trade barriers (like regulations).

But later, the White House published what might look like a complicated mathematical formula.

But the actual exercise boiled down to simple maths: take the trade deficit for the US in goods with a particular country, divide that by the total goods imports from that country and then divide that number by two.

A trade deficit occurs when a country buys (imports) more physical products from other countries than it sells (exports) to them.

For example, the US buys more goods from China than it sells to them – there is a goods deficit of $295bn.

The total amount of goods it buys from China is $440bn. Dividing 295 by 440 gets you to 67% and you divide that by two and round up. Therefore the tariff imposed on China is 34%.

Similarly, when it applied to the EU, the White House’s formula resulted in a 20% tariff.

Are the Trump tariffs ‘reciprocal’?

Many commentators have pointed out that these tariffs are not reciprocal.

Reciprocal would mean they were based on what countries already charge the US in the form of existing tariffs, plus non-tariff barriers (things like regulations that drive up costs).

But the White House’s official methodology document makes clear that they have not calculated this for all the countries on which they have imposed tariffs.

Instead the tariff rate was calculated on the basis that it would eliminate the US’s goods trade deficit with each country.

Trump has broken away from the formula in imposing tariffs on countries that buy more goods from the US than they sell to it.

For example the US does not currently run goods trade deficit with the UK. Yet the UK has been hit with a 10% tariff.

In total, more than 100 countries are covered by the new tariff regime.‘

Lots of broader impacts’Trump believes the US is getting a bad deal in global trade.

In his view, other countries flood US markets with cheap goods – which hurts US companies and costs jobs.

At the same time, these countries are putting up barriers that make US products less competitive abroad.So by using tariffs to eliminate trade deficits, Trump hopes to revive US manufacturing and protect jobs.

‎‎‎But will this new tariff regime achieve the desired outcome?

BBC Verify has spoken to a number of economists. The overwhelming view is that while the tariffs might reduce the goods deficit between the US and individual countries, they will not reduce the overall deficit between the US and rest of the world.

“Yes, it will reduce bilateral trade deficits between the US and these countries.

But there will obviously be lots of broader impacts that are not captured in the calculation”, says Professor Jonathan Portes of King’s College, London.

That’s because the US’ existing overall deficit is not driven solely by trade barriers, but by how the US economy works.For one,

Americans spend and invest more than they earn and that gap means the US buys more from the world than it sells. So as long as that continues, the US may continue to keep running a deficit despite increasing tariffs with it global trading partners.

Some trade deficits can also exist for a number of legitimate reasons – not just down to tariffs. For example, buying food that is easier or cheaper to produce in other countries’ climates.

Thomas Sampson of the London School of Economics said: “The formula is reverse engineered to rationalise charging tariffs on countries with which the US has a trade deficit.

There is no economic rationale for doing this and it will cost the global economy dearly.”

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Exchange Rates Today Friday, 12 June

Black Market Rates
US Dollar (USD) ₦1,397
Great British Pound (GBP) ₦1,850

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Official CBN Exchange Rates

US Dollar (USD) ₦1,363. 83

Great British Pound (GBP) ₦1,821. 25

EURO (EUR) ₦1,572. 90

SWISS FRANC (CHF) ₦1,706. 49

JAPANESE YEN (JPN) ₦8.50

CHINESE YUAN (CNY) ₦201.20

West African CFA (XOF) ₦2.40

West African Unit Account (WAUA) ₦1,857. 45

SAUDI RIYAL (SAR) ₦363. 29

SOUTH AFRICAN RAND (ZAR) ₦82.61

Black Market Rates

US Dollar (USD) Buy ₦1,397 Sell ₦1,405

Great British Pound (GBP) Buy ₦1,850 Sell: ₦1,870

EURO (EUR) Buy ₦1,587 Sell ₦1, 607

Canadian Dollar (CAD) Buy ₦1,030 Sell ₦1,100

South African Rand (ZAR) Buy ₦75 Sell ₦90

UAE Dirham Buy ₦350 Sell ₦370

Chinese Yuan Buy ₦180 Sell ₦200

Ghana Cedi (GHS) Buy ₦95 Sell ₦110

West African CFA Buy ₦2, 380 Sell ₦2, 460

Central African CFA Buy ₦2, 220 Sell 2,300

Australian Dollar Buy ₦800 Sell ₦900

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Business

Airtel launches data calculator to counter depletion complaints

Commenting on the significance of the launch, Dinesh Balsingh, Chief Executive Officer, Airtel Nigeria, said that the company remains focused on building a network and customer experience ecosystem anchored on trust, transparency and continuous improvement.

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Airtel Nigeria has launched the Airtel Web Data Calculator, a new digital tool designed to help customers estimate and better understand their internet data consumption based on real-life usage patterns.

Available through Airtel’s website, the calculator enables customers to estimate data usage across common digital activities such as video streaming, social media engagement, voice and video calls, and everyday web browsing.

Speaking on the launch, Oladokun Oye, Customer Experience Director, Airtel Nigeria, said that the initiative reflects Airtel’s commitment to customer empowerment and service transparency.

“As Nigerians become increasingly dependent on digital services for work, education, entertainment and communication, it is important that customers have clear visibility into how their data is consumed.

The Airtel Web Data Calculator was developed to help our customers understand their usage patterns better, make informed choices, and enjoy greater confidence in their digital experience,” he said.

Commenting on the significance of the launch, Dinesh Balsingh, Chief Executive Officer, Airtel Nigeria, said the company remains focused on building a network and customer experience ecosystem anchored on trust, transparency and continuous improvement.

“The future of telecommunications will be defined not only by network investments but also by how effectively operators help customers understand and manage their digital lives. The Airtel Web Data Calculator represents a practical innovation that places more information and control directly in the hands of our customers.” He said.

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Kingsley Moghalu chairs Bluecode Africa subsidiary in Nigeria

Moghalu served as Deputy Governor of the Central Bank of Nigeria from 2009 to 2014, heading the Financial System Stability and Operations Directorates at different periods.

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Bluecode Africa, the European payments infrastructure operator backed by leading US and European institutional investors, has named Prof Kingsley Chiedu Moghalu as Chairman of the Advisory Board of its Nigerian subsidiary, Bluecode Payments Nigeria Limited as the company formally enters the Nigerian market.

The appointment was jointly announced by Chris Pirkner, Founder of Bluecode, and Odin Krismayr, Managing Director of Bluecode Africa, who described it as a foundational governance decision for the company’s Nigerian and continental operations.

Moghalu served as Deputy Governor of the Central Bank of Nigeria from 2009 to 2014, heading the Financial System Stability and Operations Directorates at different periods.

He led the team that introduced the unique-identifier Bank Verification Number (BVN), enrolling 50 million banking users, simplifying Know Your Customer (KYC) procedures, and doubled Nigeria’s financial inclusion rate from 33 to 60 per cent.

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