On April 5th, the United States’ “reciprocal tariff” policy has been opposed by multiple countries, and the calculation method of its tax rate has also been questioned by various parties, who have criticized this calculation method as “simple and crude”, “fabricated from nothing”, and “non-standard economic practices”. Julia Spies, Director of Trade and Market Intelligence at the International Trade Center, stated that this is not the standard method for economists to calculate tax rates, but rather based on a formula that relies on trade deficits or the ratio of trade deficits to imports. Personally, I have never seen such a situation before. During an interview on the 4th, an analyst from well-known US investment bank Wade Bush Securities stated that the so-called “calculation formula” released by the Trump administration is completely unreliable and insufficient to serve as the foundation for rational international trade negotiations. He pointed out that this measure by the US government has far-reaching harm and can be regarded as the “most serious policy mistake” in the US in a century. The impact of the tariff war on US technology finance may cause the US technology industry to regress by ten years. CNBC cited research from the Cato Institute, a US think tank, stating that the tariffs claimed by the Trump administration are vastly different from the trade weighted average tariff rates of most countries. The agency cited the World Trade Organization’s trade weighted average tariff rate for 2023, stating that the United States claims Cambodia’s tariff rate against the United States is 97%, while Cambodia’s actual tariff level is 7.9%. The Trump administration claims that the European Union is imposing a 39% tariff on the United States, while the EU’s trade weighted average tariff rate for 2023 is 2.7%. (CCTV Finance)
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