I am hoping that someone out there with an economics background can explain for me and other Spy readers how Trump’s “reciprocal tariffs” announced yesterday make any sense. In responding, you might want to consider:
- Trump’s justification for these tariffs is based on a formula that divides the value of U.S. exports to a given country by the value of U.S. imports from that country, then dividing by 2. How does this completely arbitrary methodology relate in any way to actual tariffs?
- Trump has based his tariffs on the need to counter an imaginary “national economic crisis” which, under the authority of the International Emergency Economic Powers Act (1976) give him the unilateral ability – bypassing Congress – to impose these tariffs. What is the “crisis” and how is it manifested? As The Economist stated (October 19, 2024), Trump inherited a domestic economy that was “the envy of the world,” so it is impossible to comprehend how a “crisis” amounting to a national emergency could have occurred so suddenly or what it even looks like.
- Most economic commentators – including The Wall Street Journal on March 31, 2025 – describe a tariff as a “tax” on the ultimate consumer who pays the tax. If so, how are additional tariffs consistent with Trump’s stated aim of reducing taxes and curbing inflation?
- And please explain, if you can, what the economic strategy is behind these tariffs?
We await a response.
Stephen Clineburg
Talbot County
Matt LaMotte says
After a career in the insurance and investments world, I enjoyed a 2nd one as a high school teacher; including teaching economics. Trump & his advisors must’ve skipped that course. Math class, too, based on his outrageous financial gesticulations. POTUS’ focus is INTEGRATIVE (“win-lose”, like real estate was for DJT) whereas strategic, political, international/foreign policy negotiations are DISTRIBUTIVE (“win-win”, where all sides end up creating value and agree to mutual solutions). With a number of bankruptsies and business failures to his name, I’d guess the former didn’t work too well for Mr. Trump, sir.
Just sayin’…
Bob Kopec says
It makes no sense. Trump’s 2nd term (he sneaked in with 1.5% more votes than Harris)is all about retribution and revenge – nothing else. The DOW is down 3,500+ points, lots of countries hate us and the countries that had tariffs placed on them are putting those tariffs back on the US. Trump states that factories will spring up in the US – just another lie in the tens of thousands of lies that he tells – he cannot distinguish a lie from a fact, and he starts believing his own lies.
Michael Pullen says
It seems you’ve hit the mark. I think the answer is simply, “The King has no clothes.”
Wilson Dean says
As an economist who co-owned and directed a global energy-environmental-ecomonic forecasting firm for 34 years, I stand with the vast majority of economists who are declaring the Administration’s tariff policies an absolute disaster.
Trump’s goal is an economy where production serves only American consumers and Anmerican consumers only purchase from domestic producers. Simply put, this approach should self-destruct for two reasons. First, as the country with the highest standard of living on the planet with high wages, items produced domestically will force inflation to soar, especially those with a heavy labor component. Second, the approach assumes American (and other countries’) companies will make huge investments to expand US production facilities to meet the new demand. Unfortunately, most economists are pessimistic that they will do so because they realize the entire Trump tariff economy would be built upon a house of cards (the cards being the tariffs). A new Administration coming into power could easily reverse those tariffs, thereby destroying the economic rationale for operating those plants. Those investing in plants may not be risk-averse, but they aren’t crazy either.
Hal De Bona says
As expected, there is total silence from MAGA. I get the same response from my many Republican friends when I pose questions on my Facebook feed. Zero, head in the sand silence. I’d be surprised if anyone attempts an explanation or defense in response to your challenge.
Jim Franke says
MAGA: Morons Are Governing America
Lance A Simon says
“Think National, Act Local!” Right here in Easton we have an opportunity to replace the incumbent MAGA-Republican Town Council President with the Independent, long-serving, outstanding Council member from Ward 2.
Will Democrats and Center-Republicans (remember them?) show up in force on May 6 to move Easton culture & policies in a positive, inclusive and diverse direction? Or will Easton remain just another Trump-puppet town? It’s up to us, folks!
Barbara Perry says
Well said. Unfortunately, I do not live in Easton but do all my shopping, volunteer work and so on in Easton. That being said, the Town Council President and members do have an effect on all of us who come to Easton so I do hope that everyone will turn out in force and vote for Don Abbatiello to be the Council President.
Kent Robertson says
I am not an economist. I have, however, witnessed the fiscal irresponsibility of both parties for the last 30++ years which has resulted in a $36T debt. The servicing of this debt (not repayment, just the interest) cost us taxpayers over $1T last year. Our government-funded safety net of Social Security and Medicare/Medicaid are at risk of insolvency. Our military readiness is significantly diminished at a time when we are dealing with two major international wars and China is rattling her sabre in the Pacific. Our manufacturing base has moved overseas leaving us at the mercy of other countries (especially China) should we need to ramp up production urgently in the event of war. Just one major disruption like another war, another pandemic, or even an increase in interest rates, all likely scenarios, could force us to default on our loans. That would cause a major devaluation of the dollar and cost everyone dearly. If we print money to pay our debt, inflation will reduce everyone’s spending power and increase the likelihood of default down the road. I believe we are in a financially precarious position because of these factors.
Our Federal bureaucracies have grown dramatically and have increased the cost of government significantly.
No one has addressed these looming problems in decades. Our Congress and Administrations have kicked the can down the road instead of addressing the problems.
My understanding of the tariff issue is that the higher tariffs charged by almost all of our trading partners puts our farmers and businesses at a significant disadvantage, as do other international trade laws designed to protect the interests of those trading partners. I believe Trump is raising tariffs as a negotiating tool to bring tariffs down across the board, and to erase those disadvantages caused by tariffs on our goods. I have always disliked his bluster and rhetoric, and I wish he would do his negotiations in private rather than his usual rhetoric in public. That said, I have adopted a wait and see approach. At least he is trying to address the severe budget deficits, return power to the States as intended by the Constitution, and do what he promised to do during the campaign.
I guess time will tell, but I believe that if we continue down the path we’ve been on for so long, there will be a severe reconing in the not to distant future.