Trump's global tariffs spark expert skepticism and market jitters
Ten-percent tariffs on nearly all goods from almost every country in the world have been imposed by the USA, becoming a fact. However, as reported by the media, both the method of calculating these new tariffs and the choice of certain countries or regions have raised doubts among experts.
Donald Trump announced on Wednesday, during "Liberation Day," retaliatory tariffs on the entire world: 10 percent on all imports and 25 percent on foreign cars. He presented a list of countries and the respective tariff rates that will apply to them.
New U.S. tariffs. Doubts arise
The basic 10-percent tariffs on products from all countries went into effect on April 5, and additional tariffs on goods from specific countries began on April 9.
However, as reported by the media, both the method of calculating these new tariffs and the choice of certain countries or regions have raised doubts among experts.
On the list of affected countries are, for example, Australia's Heard and McDonald Islands, which are inhabited solely by seals, penguins, and birds. The Falklands, home to 3,200 people and about a million penguins, face 41-percent tariffs on exports to the USA.
"Internet analysts have taken note of the similarities between the Trump administration's formula used to decide the 'Liberation Day' tariffs, and the same methods provided by ChatGPT if asked. Critics highlighted that ChatGPT and other artificial intelligence chatbots would provide very similar methods for setting tariff levels if they were asked to design a policy," reported the American "Newsweek."
"I think they asked ChatGPT to calculate the tariffs from other countries, which is why the tariffs make absolutely no sense," "Newsweek" cites a post from political commentator Steve Bonnell on platform X.
Economist James Surowiecki suggested that these tariffs might result from a simplified calculation resembling recommendations from popular AI chatbots. According to him, the formula involves dividing a country's trade deficit with the USA by its total exports to the USA. The White House has rejected these claims.
New U.S. tariffs
On April 9, additional taxes on goods from 57 countries with a trade surplus with the United States are set to be implemented.
Among these countries are China and the European Union, which will face additional tariffs of 34 percent and 20 percent, respectively, as well as Japan (24 percent), South Korea (25 percent), India (26 percent), Vietnam (46 percent), and Taiwan (32 percent).
According to calculations by Yale Budget Lab, if all the new tariffs take effect as President Trump announced, the new average U.S. tariff rate will rise from 2.2 to over 22 percent, making it the highest in over a century, and significantly higher than tariffs in most countries around the world. As a result, tariffs will surpass those introduced by the Smoot-Hawley Act of 1930, which historians consider one of the reasons for the prolonged global crisis during the Great Depression.
Trump's tariffs. Market reaction
The announcement of tariffs by U.S. President Donald Trump on all imports to the United States led to sharp declines in the stock markets. The world's wealthiest individuals also felt the impact.
In two days, as calculated by CNBC on Saturday, Elon Musk's companies collectively lost $30.9 billion in market value, Jeff Bezos' lost $23.49 billion, and Mark Zuckerberg's lost $27.34 billion. All of them, notably, supported the Republican politician's campaign in various ways.
