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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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Business

What You Should Know About Boats Building And Why It’s Profitable

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For thousands of years, people have been using boats as a means of traveling, trading, and even for sports on water.

But how are boats built? What are the raw materials and tools for building boats? Again, how long does it take to build a boat, and what of the apprenticeship scheme?

Mr AGOSU MATTHEW, a local boat (also called canoe) builder at Badore waterfronts fishermen’s settlement,  Ajah Town in Lagos State, shares the answers with our Editor, Franklin Ocheneyi.

Happy reading:

Tell our readers about yourself.

My name is Agosu Matthew. I am a skilled boat builder. What motivated you to go into building boats?

First, I started as a fisherman. As time passed, I thought deeply about what else I could do to enhance my income from the fishing business.

I consulted with some of my co-fishermen. They advised that I go into boat building, which is an extension of the business.

How long have you been building boats?

I started 25 years ago.

It took me 14 years to acquire the skills, up to 2013, when I graduated from my master.

What are the tools for boat building?

The traditional tools include hammer hammer, axe, nails, Cutlass, and scissors, etc.

What about the woods?

We use the following woods: Opepe, Eru, Agboin, Afara, and parateru

Where do you get these woods?

Makoko at Lagos Island, and Itamagba sawmills market at Ikorodu.

How many pieces of wood make a boat?

It depends on the size of the boat.

For a big boat with 8-10 passenger capacity, we use about twelve pieces of wood.

The small boat takes between 6-7 pieces of wood.

How long does it take to build a boat?

Mr Agosu Matthew at work with his apprentice.

Again, it depends on the size of the Canoe.

Big boat takes up to two weeks if it’s only me working on it without the support of my apprentices, and if I don’t allow other things to distract me from the work.

However, if I have enough hands, it makes the construction faster and the work can be done in seven days.

What are the challenges of the business?

There are many challenges. One of them is getting the modern tools.

I rent those tools we don’t have and because of the pressure to return them within a specific hours, it slows down the pace of the construction and the timely delivery of the project.

Nevertheless, with the introduction of modern tools, the training patterns have changed. So, if an apprentice is humble, focused, brainy, and sharp, he can use four years to acquire the skills.

How is the boat market, in terms of patronage?

An aerial view of the community/ Ohi baba.com image.

People come to buy, or place orders when their boats is spoiling.

These locally made boats last for five years before spoiling.

Sometimes, we sell two boats in a month. The price of a boat is costly. We sell the big boat at N500 thousand, while the small one goes for N300 thousand.

How long does it take to learn the work?

As I said earlier, it took me 14 years to learn under my Master’s.

It took me that long because I had no financial support from anyone.

Nevertheless, with the introduction of modern tools, the training patterns have changed. So, if an apprentice is humble, focused, brainy, and sharp, he can use four years to acquire the skills.

Last, do you have an association for boat builders?

Yes; we have an association at Ikorodu. I belonged to the association ( That’s my membership ID card). The association has a lawyer, and if any challenge should arise, our chairman is the first person to know.

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BREAKING : FCCPC Wins $220million Case Against Meta (Facebook & WhatsApp)

While expressing delight at the landmark judgement, FCCPC Executive Vice Chairman/CEO, Mr. Tunji Bello, thanked the Commission’s legal team for their exceptional diligence and forensic skills in assembling evidence and marshalling their argument.

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Friday, April 25, 2025:

The Competition and Consumer Protection Tribunal today delivered its judgment in the appeal filed by Meta Platforms Incorporated (Facebook) and WhatsApp LLC against the Federal Competition and Consumer Protection Commission (FCCPC), affirming the Commission’s authority and actions in nearly all the contested issues.

The Tribunal specifically determined that the Commission complied with prevailing laws, discharged its mandate, and exercised its powers within the confines of the 1999 Constitution (as amended).

It ruled that the multiple actions by WhatsApp and Meta, for which the Commission made findings of violations, were correctly identified, and that the Commission did not err in making those findings.

In addition to upholding the major aspects of the FCCPC’s Final Order, the Tribunal awarded the sum of $220 million against Meta Platforms Incorporated and WhatsApp LLC as an administrative penalty, and further awarded $35,000 to the FCCPC as cost of investigation.

The tribunal’s three-member panel was led by Honorable Thomas Okosun.

WhatsApp and Meta’s legal team was led by Professor Gbolahan Elias (SAN) while the FCCPC’s legal team was led by Mr. Babatunde Irukera.

Both teams had made their final arguments on behalf of their respective clients on January 28, 2025.

The FCCPC had on July on July 19, 2024, issued a Final Order imposing a $220 million administrative penalty after concluding that the companies engaged in discriminatory and exploitative practices against Nigerian consumers.

The investigation started in 2020.

The case arose from a 38-month joint investigation initiated by the FCCPC and the Nigeria Data Protection Commission (NDPC) into the conduct, privacy practices, and consumer data policies of Meta Platforms and WhatsApp.

Dissatisfied with the Order last year, Meta and WhatsApp appealed to the Tribunal, challenging both the legal basis and the findings of the Commission.While ruling on Meta’s appeal, the Tribunal also validated the Commission’s investigative procedures and processes.

The Tribunal resolved Issues 1 to 7 largely in favour of the FCCPC, dismissing the appellants’ objections to the Commission’s findings, orders, and legal competence.

The FCCPC had on July on July 19, 2024, issued a Final Order imposing a $220 million administrative penalty after concluding that the companies engaged in discriminatory and exploitative practices against Nigerian consumers.

One of the central issues (Issue 3) which alleged a breach of fair hearing, was decided in favour of the Commission, with the Tribunal affirming that the FCCPC fully discharged its quasi-judicial responsibilities by affording the appellants ample opportunity to respond.

The Tribunal found no violation of constitutional due process.On Issue 4, which questioned the Commission’s powers in matters of data protection and privacy, the Tribunal held that the FCCPC acted within its statutory mandate, reaffirming its authority under Section 104 of the FCCPA to regulate competition and consumer protection even in regulated industries.On Issue 5, which challenged the Commission’s findings regarding Meta’s privacy policies, the tribunal also resolved in the FCCPC’s favour.

The Tribunal found no error in the Commission’s conclusions and held that the privacy policy in question did, in fact, offend Nigerian law.While Issue 7 was largely resolved in favour of the Commission, the Tribunal set aside Order 7 of the Commission’s Final Order, stating that it lacked sufficient legal basis.

While expressing delight at the landmark judgement, FCCPC Executive Vice Chairman/CEO, Mr. Tunji Bello, thanked the Commission’s legal team for their exceptional diligence and forensic skills in assembling evidence and marshalling their argument.

He restated FCCPC’s unwavering commitment to not only championing the rights of Nigerian consumers but also ensuring fair business practices in the country in accordance with FCCPA (2018) and consistent with the Renewed Hope Agenda of President Bola Ahmed Tinubu.

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Dangote Accepts World Bank’s Appointment

The World Bank announced Dangote’s appointment on Wednesday as part of a broader expansion of its Private Sector Investment Lab, which now enters a new phase aimed at scaling up solutions to attract private capital and create jobs in the developing world.

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The President and Chief Executive of the Dangote Group, Aliko Dangote, says he has accepted his appointment to the World Bank’s Private Sector Investment Lab, joining a select group of global business leaders tasked with driving investment and job creation in emerging economies.

In 2023, the Prime Minister of Canada, Mark Carney, co-chaired the Private Sector Investment Lab, which focused on attracting £1 trillion in sustainable investment to support the energy transition in emerging markets.

In a statement confirming his acceptance, Dangote reaffirmed his commitment to fostering sustainable economic growth through private sector-led investment, noting the transformative potential of such initiatives in developing markets.

“I am both honoured and excited to accept my appointment to the World Bank’s Private Sector Investment Lab, dedicated to advancing investment and employment in emerging economies,” he said.

Dangote added, “This opportunity aligns with my long-standing commitment to sustainable development and unlocking the potential of developing economies.

Drawing inspiration from the remarkable successes of the Asian Tigers, which have demonstrated the power of strategic investment and focused economic policy, I am eager to collaborate with fellow leaders to replicate such outcomes across other regions.”

The World Bank announced Dangote’s appointment on Wednesday as part of a broader expansion of its Private Sector Investment Lab, which now enters a new phase aimed at scaling up solutions to attract private capital and create jobs in the developing world.

Joining Dangote in the elite group are the CEO of Bayer AG, Bill Anderson; the Chair of Bharti Enterprises, Sunil Bharti Mittal; and the President and CEO of Hyatt Hotels Corporation, Mark Hoplamazian.

(PUNCH)

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