Originally Posted by Rob B.
Marty, you challenge my simple formula?
The ∆τ_i is the calculated tariff rate on a country. The”i” is just an extra symbol that doesn’t affect the calculation. It just makes it look sophisticated. The minimum tariff is 10% - even on countries with which the US runs a surplus. This explains why Trump is also taxing the pinguins.
X_i is a country's total exports to the US
m_i is a country's total imports from the US
m_i is subtracted from x_i. That gives you trade deficit or surplus
ε and φ are multiplied with each other and defined as 1 to make it simple. 1 is then multiplied with the total imports (m_i). One multiplied with a number always gives you that number.
So in plain language, the reciprocal tariff is calculated by dividing the trade deficit by the imports. They made an easy calculation look so complicated.
Try it. It works every time. It’s simple math


Reciprocal tariff =

Trade deficit
____________
Imports

You tell me to stop and think about VAT (value added tax) in Germany. Why? Let’s stay on the original subject. I’m sure you don’t know much about the German tax system. That would be a waste of time.

Rob,
Sorry. You start most statements hating Trump and working backwards from there.
To truly understand that formula and how it plays out across all imports and exports is beyond your comprehension and mine.
Yeah, I know, you think that it is only beyond mine.

Ultimately, as John perceived, I'm unconcerned with what rough estimate Trump used to arrive at the tariff formula. That's a distraction.
It only matters that the counter-tariffs are there.

Looking down 10 pages of country's tariffs and Trump counter-tariffs, nothing jumps off the page as all that out of line.
So, it really doesnt matter if he got the formula from the Oracle of Delphi or Merlin the Wizard.

https://soundcloud.com/sunset-poet-of-texas