How were Donald Trump’s tariffs calculated?

US President Donald Trump imposed a 10%tariff on most of the products imported into the United States, and was much higher in calling “worst criminals.”

But in essence, how was the tax on income solved? The BBC Verife is looking at the calculation behind the numbers.

When Trump presented a huge cardboard chart that describes the tariffs of the White House rose garden in detail, it was first assumed that the rate was calculated according to the existing trade barriers of individual countries.

But later the White House published something that could look like a complex mathematical formula.

But real exercise is summarized as a simple mathematics. It accepts the US trade deficit in a product with a certain country, divides it into a total product income of the country, and then divides the number into 2.

Trade deficit when the state buys more physical products in other countries.

For example, the United States buys more products than in China. There is a $ 29.5 billion product deficit. The total amount purchased in China is $ 440 billion.

If you divide 295 into 440, it becomes 67%. Therefore, 34%of tariffs imposed on China.

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

Many commentators pointed out that these tariffs are not mutual.

Mutual subsidiaries mean that they are based on a state that already claims the US state in the form of existing tariffs and non -neck barriers (such as increasing costs).

But the official methodology of the White House makes it clear that they did not calculate this for all countries that imposed tariffs.

Instead, the tariff rate was calculated as the basis for eliminating US trade deficits with each country.

Trump is out of the formula that imposes tariffs on countries that buy more products than they sell in the United States.

For example, the United States does not currently operate a commodity trade deficit with the UK. But the UK was hit by a 10%tariff.

A total of more than 100 countries are applied by the new tariff system.

Trump believes that the United States is doing bad deals in world trade. His view is that other countries have flooded the US market with cheap products in the US market, harming American companies and costly. At the same time, these countries are building a barrier that makes our products less competitive abroad.

Therefore, Trump hopes to resurrect US manufacturing and protect jobs by using tariffs to remove trade deficits.

But will this new tariff system get the desired results?

The BBC Verify has a conversation with many economists. Overwhelming views can reduce customs deficits between the United States and individual countries, but they will not reduce the overall deficit between the United States and the world.

Jonathan Portes, a King’s colleges in London, said, “Yes, it will reduce quantum trade deficit between the United States and these countries, but London’s King’s College Jonathan Portes says.

This is because the overall deficit of the United States is not entirely a trade barrier, but by the US economy.

First of all, Americans spend and invest more than they get, and the difference means that they buy more things in the world than the US sells. Therefore, as long as the United States continues, it can continue to operate a deficit despite the increase in tariffs with IT global trading partners.

Some trade deficits can exist for various justifications until the tariff. For example, buy a more easier or cheaper food in the climate of another country.

Thomas Sampson of London Economic School said: