DOGE's Next Target Set To Hand 401K Savers A Windfall?

Musk's Department of Government Efficiency has already uncovered $55B in waste--and Trump's backing his plan to return $2T in savings to taxpayers. But why wait? Unlock a legal Trump IRS loophole to protect & grow your wealth NOW!

Trump's tariffs aren't strictly reciprocal. Here's how he calculated them

WILL WEISSERT
April 03, 2025

WASHINGTON (AP) -- President Donald Trump promised tariffs that would raise U.S. import taxes high enough to mirror what other assess as trade penalties on American goods.

What he's actually imposing is based on far more complicated math.

Here's a look at how the White House got its numbers:

Why do the new tariff rates often differ by country?

The Trump administration has declared an "economic emergency" to bypass Congress and impose a 10% tariff on nearly all countries and territories. It has set even higher levies for about 60 nations that it says are the "worst" offenders.

The 10% global tariffs take effect at 12:01 a.m. Saturday. The higher tariffs set for specific countries are due to kick in at one minute past midnight on April 9.

Among the so-called worst offenders is China, which Trump argues protect its producers through "malicious" trade practices in addition to tariffs. Those efforts include actions such as imposing value added taxes on all goods, dumping overproduced products on markets to artificially deflate prices, or manipulating currency.

To determine how much higher those nations' rates should be, the White House says it calculated the size of each country's trade imbalance on goods with the United States and divided that by how much America imports from that nation.

It then took half that percentage and made it the new tariff rate.

Why not just charge reciprocal rates?

The White House says its calculations kept new tariffs from going even higher for many countries and demonstrate that Trump is being "kind" to global trading partners.

The administration maintains that creating a baseline levy with few exemptions is necessary to keep China and others from skirting the new tariffs by manufacturing goods and then shipping them to Vietnam, Cambodia, Mexico or elsewhere to then be sent to the U.S.

That's why the White House list of tariffed locations includes obscure places like the Heard and McDonald Islands, which are uninhabited. They are 2,550 miles (4,100 kilometers) from the coast of mainland Australia, which claims them as a territory.

Is every country affected?

No. Canada and Mexico are excluded because they already are facing 25% taxes on most imported goods that Trump announced last month, in an attempt to force both to crack down on fentanyl smuggling into the U.S.

The White House originally said all others would be affected by at least the 10% tariff. But administration officials clarified on Thursday that countries already subject to stiff U.S. sanctions -- for example, Russia due to its invasion of Ukraine, as well as Iran, North Korea, Cuba, Belarus and Venezuela -- will not face the new, 10% global base tariff.

Official said that is because sanctions and other existing barriers mean the U.S. has so little trade with those places that deficits are minimal.

Why is Trump doing this?

The president has spent months insisting America was at its wealthiest at the end of the Gilded Age in the late 1800s and early 1900s, when it imposed high tariffs as the key means to generating revenue for the federal government.

Trump even suggested Wednesday that the U.S. moving away from higher tariffs and toward a federal income tax in 1913 helped trigger the Great Depression of the 1930s -- a claim that economists and historians roundly reject.

A more contemporary explanation might be found in Project 2025, a comprehensive blueprint compiled by leading conservatives about how to shrink the federal workforce and push Washington further to the right. It spelled out how Trump might impose high tariffs around the globe, giving his administration more room to negotiate lower levies with trading partners in exchange for U.S. priorities.

White House officials insist the new tariffs are more about closing trade deficits, stimulating U.S. manufacturing and generating government revenue than eventually negotiating new trading deals.

But Trump has shown he is willing to back off on threats of tariffs in exchange for offers of concessions. His administration has said the president is always ready to make deals, a sign the new tariffs may prove to be more bargaining chip than permanent policy.

Why do US trade imbalances matter?

American trade policy created a U.S. trade imbalance worth $1.2 trillion last year, a gap that some experts believe should be addressed in order to ensure the country's long-term economic strength.

But many economists say the trade imbalances that Trump is looking to correct are based on more than countries just using high tariffs or protectionist trade practices to boost their own exports. Basing the White House's tariff math solely on trade deficits, for instance, fails to take into account U.S. consumer demand.

Americans relish buying BMWs assembled in Germany, as well as French wine and coffee beans from Guatemala, and their spending can fuel trade imbalances regardless of the tax and tariff policies of the countries producing those goods.

That means any attempt to close U.S. trade gaps by tariffs will likely mean increasing the cost of imported goods that Americans are buying, which in turn could hurt the economy because of increased inflationary pressures.

___

Associated Press writers Josh Boak and Zeke Miller contributed to this report.

Continue Reading...

Popular

Ryan Cohen Buys GameStop Stock On Thursday: What Investors Need To Know

GameStop Corp (NYSE:GME) shares are trading higher in Thursday’s after-hours session after a regulatory filing showed CEO Ryan Cohen increased his stake in the company.

Peter Thiel-Backed Nonprofit Sentient Aims To Be America's DeepSeek, Takes Aim At Closed AI Systems

Sentient, a Peter Thiel-backed nonprofit, has launched its open-source AI search framework, Open Deep Search (ODS), positioning it as America's response to China's DeepSeek and its challenge to the dominance of closed-source AI systems.

Hate Elon? Read Immediately - Ad

Elon Musk is days away from launching the most radical economic transformation in American history. Please understand... you don't have long to act before Elon makes his move. Inside the next 100 days, I predict he's going to instigate an economic transformation that'll impact hundreds of millions of people.

Ross Gerber And Gary Kasparov Slam Bill Ackman's Defense Of Trump's Trade War Tactics: 'This Is Garbage Policy'

Ross Gerber, the president and CEO of Gerber Kawasaki Wealth & Investment Management and chess champion, Gary Kasparov, have publicly criticized Bill Ackman for his defense of President Trump's trade war strategies.

TSMC Steps Up To Take 20% Stake In Joint Venture With Intel As Struggling Chipmaker Grapples With Nearly $19 Billion Losses In 2024: Report

TSMC is set to acquire a 20% stake in a joint venture with Intel to address the U.S. chipmaker's ongoing struggles, including its $18.8 billion net loss in 2024, as part of a broader effort to revive Intel's fortunes amid pressure from U.S. government officials.

Forget DOGE -- Here's What Elon Is Really up To - Ad

While the media chases DOGE drama, Elon's building a secretive AI empire in Memphis--growing 7X faster than OpenAI. It could outshine Tesla, SpaceX, and PayPal. We found a $100 "backdoor" in. Click to see how you could invest before the masses.

Trump Gets Sued Over China Tariffs: Congress Did Not Grant Presidents 'Blank Check To Write Domestic Policy'

President Donald Trump was sued Thursday by New Civil Liberties Alliance on behalf of a small business. The lawsuit challenges his powers to impose tariffs.

Hurry! Enter These 2 Trades by EOD Tuesday - Ad

This system uses an odd twist on trading options that has led to win after win, oftentimes doubling your money in just 3 days! This simple system hasn't closed out a losing trade... in more than 8 years! And the latest two trades are about to be released...

Torpedo Bats Take Over MLB, Sportsbooks: Public Company Sees Soaring Demand For Home Run Hitting Baseball Bat

If torpedo bats are here to stay and going to keep taking over Major League Baseball, investors may want to look at the company set to benefit.

Elon Musk's Memphis Secret... Revealed - Ad

What's happening inside this nondescript building in South Memphis is so incredible... That Elon's competitors have been flying drones over this place... Trying to get any kind of intel on his project. Tech legend Jeff Brown went there to investigate and what he found is truly a matter of national security.

Trump Tariffs Trigger Sell-Off: On Holding, AST SpaceMobile, Lululemon, Shopify, Robinhood Tank

The SPDR S&P 500, which tracks the S&P 500, is facing heavy selling pressure in Wednesday's after-hours session following reciprocal tariffs from the Trump Administration.

Stock Of The Day: Where Will The MercadoLibre Sell-Off End?

MercadoLibre (MELI) stock has broken support. This is a bearish dynamic that suggests the price could trend lower.

The Most Important "AI Stock" You've Never Heard Of - Ad

The AI revolution is moving faster than anyone expected. But what no one is talking about is the one company AI simply can't exist without. It may be the single most important AI investment, yet most people don't even know its name. For now. The moment Wall Street catches on, this $20 stock could explode.

Mark Zuckerberg-Led Meta Set To Face 'Truth' At Senate Hearing Over China Operations And Communist Party Censorship Efforts

The Senate Judiciary Subcommittee will hold a hearing to investigate Meta's alleged efforts to engage with China, including its ties to censorship tools and the Chinese Communist Party, amid concerns over the company's foreign operations.

Japan's Ishiba says he will push for US auto tariffs exemption

TOKYO (AP) — Japan’s Prime Minister Shigeru Ishiba said Tuesday his government is making last ditch efforts to get U.S. President Donald Trump to exclude his country from an increase in auto tariffs due to take effect

Gold Prices Are Skyrocketing - Is This the Moment? - Ad

With analysts forecasting gold at $4,000 per ounce, a new exploration company may be perfectly positioned.

Elon Musk Drops Stunning Bombshell? - Ad

Behind closed doors, Musk revealed a game-changing breakthrough technology that could shake the tech world & crush major companies. Why is no one talking about it? Luckily, we had a man on the inside - watch now to see the details & how to profit!

Sam Altman-Led OpenAI Releases Open-Weight AI Model With Reasoning Capabilities As DeepSeek And Meta Taste Success

OpenAI CEO Sam Altman announced the release of a new open-weight language model with reasoning capabilities, set to be the first since GPT-2, offering developers the ability to fine-tune the model for specific tasks, with feedback events planned globally.

Oil Execs Challenge Trump's Drilling Agenda, JD Vance Criticizes Denmark, And More: This Week In Politics

The past week was filled with significant developments, from oil and gas executives expressing their frustration with President Donald Trump's drilling policies to Vice President JD Vance raising security concerns over Greenland.

Elon's Biggest Secret Could Save Your Retirement - Ad

From a near-fatal car crash to surviving deadly malaria, Musk's fearless drive built Tesla, SpaceX, and Starlink. Now, he's warning America--and smart investors are listening. Discover the Trump IRS Loophole to protect your IRA & 401(k).

Forget M.A.G.A. -- Get Ready for M.A.W.A. - Ad

Trump's new mission: Make America Wealthy Again. And according to ex-CIA advisor Jim Rickards, the U.S. is sitting on a $150 trillion fortune--enough to make every family millionaires. Discover how this hidden wealth could soon change everything.

Mexico bans junk food sales in schools in its latest salvo against child obesity

MEXICO CITY (AP) — A government-sponsored junk food ban in schools across Mexico took effect on Saturday, officials said, as the country tries to tackle one of the world’s worst obesity and diabetes epidemics.

The US Bank executive killed in a plane crash died of blunt-force injuries

MINNEAPOLIS (AP) — The U.S. Bank executive killed when his in suburban Minneapolis died of blunt-force injuries, a medical examiner ruled Tuesday.

Maverick Trader Reveals 97% Accurate System - Ad

This man's simple strategy makes money in any market...With a 97% accuracy at hitting winners over the past 8 years!

Paris Hilton's nonprofit gives $25,000 grants to women-owned small businesses hit by the Eaton Fire

LOS ANGELES (AP) — There are brief moments when Annisa Faquir forgets that the Little Red Hen Coffee Shop, the Altadena diner her grandmother founded a half century ago, burned down in the .

Wall Street Wipes Out $2 Trillion, Apple Eyes Worst Day Since COVID-19 Pandemic, Oil Plummets: What's Driving Markets Thursday?

President Donald Trump's sweeping new trade tariffs sent shockwaves through global markets on Thursday, triggering a massive sell-off that echoed the COVID-19 pandemic-era routs, as investor risk appetite vanished in a flash.

DOGE Could Send 6 AI Stocks Through the Roof - Ad

Expect an announcement from Elon any day now ...Thousands of government jobs could be replaced ...By a new form of AI. This one move could save American taxpayers billions of dollars. And we believe six specific stocks could soar as a result.

Trump To Target 'Dirty 15' Countries With Tariffs: Which Countries Could Be Included?

President Donald Trump is preparing to announce his most expansive tariff plan to date, set to take effect on April 2. What countries could be targeted?

Is US Taking Cues From Argentina's Bold Reforms That Sparked A Market Rally?

Argentina's fiscal reforms helped curb inflation and ignite a market rally, Could the U.S. be on a same path under D.O.G.E. and Trump?

"Trump Will Be Furious We're Leaking This..." - Ad

Bombshell new accusation from Trump insider. Economic advisor, personal friend, and campaign insider breaks silence on the financial crisis he believes is being engineered by the Trump administration.

Republicans moving ahead with Trump's 'big' bill of tax breaks and spending cuts amid tariff uproar

WASHINGTON (AP) — After a long wait, the Senate is launching action on "big, beautiful bill” of tax breaks and spending cuts at a risky moment for the .

IonQ Jumps On Amazon News, But Can It Defy Quantum Bearish Trend?

IonQ stock surges on quantum computing milestone with Amazon partnership, but technicals show bearish trend and cautious investors.

Brace Yourself for Jeff Bezos' "Amazon Helios" - Ad

Amazon delivers 20 million packages a day... powers some of the most popular websites... delivers medication to half of the U.S. population... and even produces award-winning films and TV shows. But a Wall Street legend -- twice featured on 60 Minutes -- predicts that "Amazon Helios" will be bigger than all of those... COMBINED.

Canada's oldest company to liquidate all but 6 stores starting Monday

TORONTO (AP) — An Ontario court on Friday gave Hudson’s Bay, Canada’s oldest company, permission to start liquidating all but six of its stores on Monday.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright trendadvisor.net
Privacy Policy | Terms of Service