Astonishing incompetence was on display when Trump unveiled his charts of “reciprocal tariffs” on what he absurdly calls Liberation Day.
For each country, the table includes two columns. The first is “Tariffs Charged to the U.S.A.” adding that this was “Including Currency Manipulation and Trade Barriers.” Second are the newly imposed “U.S.A. Discounted Reciprocal Tariffs,” which are either half the first figure or 10%, whichever is greater.
The tariffs listed are plainly not actual tariff rates imposed by the countries on U.S. products. (Does Madagascar actually charge 93% tariffs on U.S. imports?) So what are they?
Some internet sleuths pulled together the data, and it’s shocking. The supposed tariffs charged to the U.S.A. were calculated by dividing the U.S.’s trade deficit in goods only with that country, by the country’s total exports in goods to the U.S.
Consider Madagascar. According to data from the U.S. Trade Representative, Madagascar exported $733 million in goods to the U.S. in 2024, and imported only $53 million. That leaves a trade deficit (in goods) of $680 million. Dividing 680 by 733, we get 93%.
