The actual formula is much more dumb: it's trade deficit with the country divided by total imports for the country, with a base of 10%. There's no accounting for our "exported services," either: just physical goods.
Uninhabited islands got hit with 10%. Even countries we run a trade surplus with got hit with 10%.
The actual formula is much more dumb: it's trade deficit with the country divided by total imports for the country, with a base of 10%. There's no accounting for our "exported services," either: just physical goods.
Uninhabited islands got hit with 10%. Even countries we run a trade surplus with got hit with 10%.
And there's some decent evidence that the policy was cribbed from an LLM.
https://www.tradingview.com/news/cointelegraph:746c1efa2094b:0-did-chatgpt-come-up-with-trump-s-tariff-rate-formula/
More on the LLM model from Gary Marcus.
The more I read about this, the dumber it gets.
https://garymarcus.substack.com/p/did-an-llm-help-write-trumps-trade
Here’s a good explanation. Very simple. And dumb.
https://youtu.be/PWhv-06DNjE