Overview

• President Trump’s tariffs, ranging from 10% to 50%, are calculated using a formula criticized for inflating foreign tariff rates and excluding services from trade deficit calculations.
• The tariff formula contains an error involving elasticity values, which inflates assumed foreign tariffs fourfold and skews U.S. tariff rates.
• Global markets have reacted sharply, with the S&P 500 dropping 9% and over $3 trillion wiped from global stock markets since the tariffs took effect on April 2, 2025.
• Major trading partners, including China and the European Union, have announced retaliatory measures, escalating trade tensions and further straining international relations.
• Economists warn that the tariffs could increase consumer costs, disrupt supply chains, and heighten the risk of a global recession, prompting calls for policy revisions.