What’s behind Trump’s strange (and basic) tariff formula?
The United States has unleashed a trade war by announcing a minimum 10% tariff on all imports, in addition to specific tariffs for its trading partners.
Methodology
Trade balance figures are from 2024 data published by the U.S. Census Bureau. The tariff considered in effect is based on the World Trade Organization calculation of the average tariff each country imposes on the United States.
The VAT figures are taken from the average tax rate for each country in the report by the consulting firm PwC, the remaining data come from Our World In Data.
The formula and all related calculations were made using the data released by the White House this past Wednesday. The countries included in this article are the United States' 30 largest trading partners.
