How to calculate Trump’s tariff rates

They charge us a tax or tariff

And we charge them the exact same tax or tariff. Very simple

That was the initial, very simple idea behind reciprocal tariffs. But as President Donald Trump revealed the rates on Liberation Day, the calculations appeared more complex than that

Bangladesh is 74%. So you see what's going on. But Bangladesh doesn't actually charge the U.S. 74% tariffs

For nations that treat us bad. we will calculate the combined rate of all their tariffs, non-monetary barriers, and other forms of cheating

And despite the White House saying this calculation is in play, there's a much simpler equation to get to 74%

Take the U.S. goods trade deficit between the two countries, divide it by the amount the U.S. imports from that country

and you have Trump's stated tariff rate. For Bangladesh, census data shows the U.S. took in nearly 6.2 billion more in goods than

Bangladesh imported of U.S. goods. Divide that deficit by what the U.S. brings in, you get 74% rounded up

Author James Surawiki on X appears to be the first to figure out the calculation. And it rings true

up and down the chart, except for when you see those 10% flat rates, like in Australia, where we

actually have a trade surplus. For what the U.S. will charge in return, Trump is cutting in half

the listed rate This is not full reciprocal This is kind reciprocal But what we do is we cut it in half We charge them My answer is very simple if they complain If you want your tariff rate to be zero then you build your product right here in America

Because there is no tariff if you build your plant, your product in America

For our example here, Bangladesh. Manufacturers in the country say Trump's tariff is a massive blow

Bangladesh thrives in textiles. It's ready-made garment sector. is supported by a skilled local workforce and low wages

Now we've whacked them with a very high tariff to bring back what apparel

It's what I say, are you going to knit your own knickers? This is what this is about

I don't think that's what Americans are thinking about when the president says he wants to

re-industrialize the United States. There were also some countries missing from the list

The White House says the likes of Mexico and Canada were excluded because the U.S. is already

imposing separate tariffs. They said Russia's exclusion is due to sanctions and the fact that the U.S. does very little trade with the nation because of it

Yet 2024 census data shows a multibillion-dollar trade deficit with Russia, while other countries like Serbia number in the hundreds of millions

Serbia is facing a 37% discounted tariff rate. Notably, the U.S. didn't calculate trading services in any equation

That would have lessened the sting on the European Union. The U.S. has a service trade surplus with the EU

but the percentage charge only calculates goods. For straight-airn news, I'm Simone Del Rosario