Someone did the math in EU
Someone did the math in EU
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:
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Re: Someone did the math in EU
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”.