Goldman Sachs Says "Go for Gold" - Here's Why

A little-known gold company has caught the eye of a global mining giant. Could this be a pivotal moment for the U.S. gold sector?

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

Niu Technologies Q1 Sales Volume Surge 57% On Solid China Demand

Chinese EV maker Niu Technologies sold over 203,000 units in Q1 2025, fueled by a 66% domestic sales surge. Its new NX Pro scooter launch attracted 3.5 million viewers and significant pre-orders.

U.S. economy likely created modest 130,000 jobs last month as Trump trade wars lift recession fears

WASHINGTON (AP) — The U.S. job market is slowing at a time when Americans are increasingly anxious about what President Donald Trump’s trade wars are going to do to the economy.

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

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!

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.

BP Begins Hunt for New Chair As Elliott Management Pushes for Changes

BP's board begins search for new Chair following Helge Lund's decision to step down, amid pressure from activist hedge fund Elliot Management.

Trump's Next Move - Ad

First it was MAGA, then MAHA, now MARA. New video reveals what Trump's greatest plan yet. Presidential insider exposes shocking plot to reshape U.S. economy.

Bill Ackman: 'Just Pick Up The Phone'—Says Trump Will Reward Early Dealmakers, Punish Foreign Tariff Retaliation

As global markets shed $2 trillion in value following President Donald Trump's sweeping reciprocal tariffs, billionaire investor Bill Ackman offered pointed advice to foreign leaders.

Faced with Trump's new tariff, French wine producers expect rough times ahead

CHABLIS, France (AP) — France’s wine producers are deeply concerned that the slapped by President Donald Trump will deal to the sector that relies on the U.S. as its top market.

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.

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.

Trump's Sweeping Tariffs Could Cost US $20 Trillion, Crash Markets Warn Economists: 'Monstrously Destructive'

Leading economists reacted with alarm after President Donald Trump announced sweeping new tariffs on U.S. trading partners, with some projecting potential economic losses of up to $20 trillion.

Trump to Trigger 3rd Financial Reset - Ad

Markets are falling, prices are rising, and trust is breaking. But a man who has known Trump for years and served as his advisor believes it's not failure--it's a plan. A secret financial reset, decades in the making, is already unfolding...The question is: will you be blindsided--or benefit?

Recession In 2025? Crypto Bettors Now See Over 50% Probability After Trump's Sweeping Tariff Rollout (CORRECTED)

Editor’s Note: A typographical error in the headline of this story has been corrected. Cryptocurrency bettors sharply upped the odds of a U.S. recession Thursday following President Donald Trump's worse-than-expected "Liberation Day" tariff rollout.

Jeff Bezos Quietly Backing World-Changing Tech (Not AI) - Ad

The Amazon founder is quietly advancing a radical technology that could change society forever and make early investors rich.

Trump Threatens Russian Oil Tariffs, Says He's 'Very Angry' At Putin

President Donald Trump has expressed fury over recent remarks by Russian President Vladimir Putin suggesting Ukrainian President Volodymyr Zelenskyy should be replaced.

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.

Prosecutors directed to seek death penalty against UnitedHealthcare killing suspect Luigi Mangione

NEW YORK (AP) — U.S. Attorney General Pam Bondi said Tuesday she has directed federal prosecutors to seek the death penalty against Luigi Mangione, the man accused of gunning down Brian Thompson outside a New York City hotel on Dec. 4.

Elite Investors Are Buying This Dip Like Crazy - Ad

While everyday investors panic, billionaires are quietly accumulating crypto at these "artificially suppressed" prices. They know Trump's pro-crypto policies and institutional adoption are creating a coiled spring ready to explode upward once uncertainty clears. History shows these fear moments create the biggest fortunes.

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.

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.

'I bought their dream': How a US company's huge land deal in Senegal went bust

DAKAR, Senegal (AP) — Rusting pipes in a barren field and unpaid workers are what remain after a U.S. company promised to turn a huge piece of land in Senegal — about twice the size of Paris — into an agricultural project and create thousands of jobs.

Dollar Tree, GameStop And 3 Stocks To Watch Heading Into Wednesday

With U.S. stock futures trading mixed this morning on Wednesday, some of the stocks that may grab investor focus today are as follows:

New "Trump" Currency Proposed in DC - Ad

A new Executive Order could unlock a $150 trillion hidden asset--and spark a historic boom in one overlooked corner of the market. Jim Rickards reveals the full story--before it hits front-page news. Watch now before it's too late!

Elon Musk Attacks Netflix Hit Series, Shares 'Anti-White Propaganda' Allegation: Here's How The Show's Writer Claps Back

One of Netflix's biggest hits in 2025 has been attacked for its use of race. One of the show's co-writers spoke out about the allegations, which were amplified by Elon Musk.

Trump's 'Reciprocal Tariff' Plan Hits Market Confidence As Dow Futures Drops Over 830 Points

U.S. stock futures plunged on Wednesday after President Donald Trump unveiled broad new tariffs on key trading partners, sparking fears of a global trade war that could further weaken the U.S. economy.

Trump's Crypto Boom: The Hidden Opportunity in Today's Dip - Ad

Few realize Trump is systematically engineering a massive wealth transfer through crypto. His team is dismantling barriers, creating a national reserve, and setting the stage for an unprecedented bull run. This temporary price dip is the perfect entry window.

CEO of fast-fashion brand Primark steps down after allegations of bad behavior in social situation

LONDON (AP) — The chief executive of Primark, one of Europe’s biggest fast fashion retailers, has resigned after an investigation into his behavior toward a woman in a social environment.

A river 'died' overnight in Zambia after an acidic waste spill at a Chinese-owned mine

KITWE, Zambia (AP) — Authorities and environmentalists fear the long-term impact of an acid spill at a mine that contaminated a major river and could potentially affect millions of people after signs of pollution were detected at least 100 kilometers (60 miles) downstream.

The DOGE Shock: Nine Stocks to Buy - Ad

They say that DOGE's real agenda could shock the entire stock market in the coming days - sending a handful of widely unknown stocks soaring. And they've compiled the definitive investment playbook for anyone who wants the opportunity to capitalize.

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.

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 .

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!

JP Morgan Launches New ETF To Tap Into US Large-Cap Growth: JUSA Hits NYSE

J.P. Morgan Asset Management launched the JPMorgan U.S. Research Enhanced Large Cap ETF, or JUSA on the New York Stock Exchange, expanding its research enhanced ETF offerings.

Caught in the middle, this quaint US exclave is grappling with Trump's trade war with Canada

POINT ROBERTS, Wash. (AP) — In the northwest corner of Washington state lies a quirky U.S. exclave so dependent on Canada’s goodwill that the strain of President Donald Trump’s is inescapable — in the sole grocery store, at any of the three eateries, and for the many residents who never voted for him.

Microsoft, Amazon, and OpenAI Pour Billions Into Breakthrough Tech - Ad

We're heading into the biggest energy crisis we've ever faced. The computational power needed for AI models is DOUBLING every six months...That's why tech companies are investing BILLIONS into an AI "Master Key" technology that's crucial for the advancement of AI...And there's one pioneering company at the forefront of its development.

10 IRA mistakes to avoid

From contributions to conversions to distributions, don’t fall into these traps when managing your IRA.

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