Someone did the math in EU

Post Reply
Cliff_N
Posts: 415
Joined: Sun Jul 24, 2022 4:09 pm
Location: Seabrook, TX
Contact:

Someone did the math in EU

Post by Cliff_N »

Dan, it appears that the EU is prepared to take one of your three options. If the EU goes to zero tariffs, "these wicked tariffs won't destroy their economy!" Tariffs seem to work everywhere but the USA. Nothing like encouraging Trump:
Image
Attachments
EU Tariffs.jpg
EU Tariffs.jpg (59.23 KiB) Viewed 761 times
aja57
Posts: 578
Joined: Sun May 29, 2022 10:35 pm

Re: Someone did the math in EU

Post by aja57 »

I think what most don’t understand is that a reciprocal tariffs is not reciprocal on the tariff rate a country charges but is a tariff on trade outflows. While many in the media and “economic experts” pound the table that Trump’s reciprocal tariff rates make no sense, the calculations are based on 50% of the trade deficit/trade export. This is a scaled tariff rate that takes into consideration non tariff barriers such as currency manipulation and export subsidies. Scaled tariffs create incentives for mercantile countries to cooperate and is targeted toward imbalanced trade relationships.When trade is balanced the scale tariff goes to zero. It eliminates the “game of chicken”.
Post Reply