No, that’s not what a trade deficit means – and that’s not how you calculate other nations’ tariffs
By Peter Draper, Professor, and Executive Director: Institute for International Trade, and Jean Monnet Chair of Trade and Environment, University of Adelaide
Vutha Hing, Lecturer in International Trade, University of Adelaide
To calculate its ‘reciprocal tariffs’, the Trump administration has opted for a crude formula with no basis in trade theory. We are all going to pay the price.
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Friday, April 4, 2025