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      How Are Trump’s Tariff Rates Calculated?

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      As he unfurled his list of tariffs targeting most of America’s trading partners, President Trump repeatedly stressed that each nation’s rate was reciprocal — reflecting the barriers they had long erected to U.S. goods.He said little about the methodology behind those calculations, but a possible answer emerged later on Wednesday. Each country’s new tariff rate appeared to be derived by:Taking the trade deficit that America runs with that nation and dividing it by the exports that country sent into the United States.Then, because Mr. Trump said he was being “kind,” the final tariff number was cut in half.James Surowiecki, a financial writer and book author, first pointed out the trend in a post on X. His comment set off widespread speculation, given that Mr. Trump previously said each nation’s tariff rate would be “the combined rate of all their tariffs, non-monetary barriers and other forms of cheating.”Those non-monetary barriers include a host of hard-to-quantify laws and other policies that Mr. Trump sees as the primary reason that the U.S. experiences such trade imbalances in the first place. (There are exceptions: Some nations face only a standard 10 percent minimum tariff starting this month.)In an earlier briefing with reporters, White House officials said the figures were calculated by the Council of Economic Advisers using well-established methodologies. The official added the model was based on the concept that the trade deficit that we have with any given country is the sum of all the unfair trade practices and “cheating” that country has done.The White House later clarified its methodology in this post. Though it uses some mathematical symbols that might be hard to parse, it confirms that the formula is essentially based on the U.S. trade deficit with a foreign country, divided by the country’s exports.“It was always going to be a really difficult exercise to come up with a very precise reciprocal tariff rate,” said Emily Kilcrease, the director of the Energy, Economics and Security Program at the Center for a New American Security and a former deputy assistant U.S. trade representative.“Given what seems to be their desire to get something out quickly, it appears what they’ve done is come up with an approximation that is consistent with their policy goals,” she said. More

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      Americans’ Reaction to Trump’s Tariffs Range From Worried to Enthusiastic

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      President Trump’s announcement of sweeping universal and so-called reciprocal tariffs on countries around the world drew a swift rebuke on Wednesday from business groups, trade experts, Democratic lawmakers and many economists who warned that they would raise prices for American consumers and slow economic growth.“This is catastrophic for American families,” said Matt Priest, president and chief executive of the Footwear Distributors and Retailers of America. “We had hoped the president would take a more targeted approach, but these broad tariffs will only drive-up costs, reduce product quality and weaken consumer confidence.”Other reactions were more muted, and some positive, saying the move was long overdue.“Today is arguably the single greatest trade and economic policy action in the history of the country, and it absolutely cements President Trump’s legacy that he is trying to usher in a new golden age of economy production and prosperity,” said Nick Iacovella, executive vice president at the Coalition for a Prosperous America, a group that supports tariffs. He said the tariffs would contribute to “broadly re-industrializing the United States and creating working class jobs.”Mr. Trump insisted on Wednesday that experts had been wrong all along about his tariffs and that the anxiety about them now was misplaced. But those who will be forced to pay the tariffs were quick to raise concerns about the move, which will increase import taxes on products from some of America’s biggest trading partners including China, the European Union, Japan and India.The National Retail Federation said in a statement that the tariffs would “equal more anxiety and uncertainty for American businesses and consumers.” Tariffs are not paid for by foreign countries or suppliers but by U.S. importers, they said. They also added that “the immediate implementation of these tariffs is a massive undertaking and requires both advance notice and substantial preparation by the millions of U.S. businesses that will be directly impacted.”The National Association of Manufacturers said it was still parsing the details and exact implications of the president’s tariffs. But the group’s president, Jay Timmons, said in a statement that the high costs of new tariffs threatened “investment, jobs, supply chains and, in turn, America’s ability to outcompete other nations and lead as the pre-eminent manufacturing superpower.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Chinese Auto Giants Dongfeng and Changan Are in Talks to Merge

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      The state-owned automakers, longtime joint venture partners of Ford and Nissan, might combine operations as Beijing consolidates its sprawling car sector.Two of China’s biggest state-owned automakers are in advanced discussions to merge, in a deal that would create a formidable manufacturer of cars and military vehicles but could also create problems for their American and Japanese partners.Dongfeng Motor and Changan Automobile have conducted detailed talks on how to combine their operations and told their foreign partners of their intentions, said two people with detailed knowledge of the discussions who were not authorized to comment.Although little known outside China, each company produces slightly more cars for its own brands and through joint ventures than global automakers like Mercedes-Benz or BMW. Dongfeng and Changan together make about 5 million cars a year — more than Ford Motor and almost as many as General Motors or Stellantis, the giant that owns Fiat, Chrysler and Peugeot.A merger of Dongfeng and Changan would represent a significant consolidation of China’s auto market, the world’s largest, and another sign of the country’s rapid embrace of electric vehicles. Both companies have considerably more factory capacity for producing gasoline-powered cars than they need.Beijing’s hope is that a combined company will be able to close excess factories for gasoline cars and become more successful in electric cars.China’s national government owns controlling stakes in Dongfeng and Changan. Dongfeng is a leading supplier of military vehicles to the People’s Liberation Army and Changan is a subsidiary of a Chinese military contractor, which could draw unwanted attention from the Trump administration to a new, larger military supplier and its joint venture partners.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Crucial Week for Trump: New Tariffs and Elections Will Test His Momentum

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      Down-ballot races in Florida and Wisconsin are seen as a referendum on the White House, while the president’s to-be-announced reciprocal tariff plan is increasingly worrying investors and consumers.President Trump’s political momentum will face a major test this week as Democrats try to turn various down-ballot races into a referendum on the White House, and Mr. Trump’s long-promised tariffs risk rattling allies and consumers alike.A State Supreme Court election in Wisconsin on Tuesday is seen as an indicator of support for Mr. Trump, particularly after Elon Musk and groups he funds spent more than $20 million to bolster Mr. Trump’s preferred candidate. White House officials have also been increasingly concerned with the unusually competitive race on Tuesday for a deep-red House seat in Florida left vacant after Representative Michael Waltz stepped down to serve as Mr. Trump’s national security adviser.The White House is hoping victories in those races will tighten Mr. Trump’s grip on the Republican Party as his team seeks to overcome the backlash from its inadvertent sharing of military plans on a commercial app with a journalist.The Florida election is critical for Republicans, who hold a narrow majority in the House as they try to pass the president’s agenda. The outcome of the Wisconsin race, in a battleground state that Mr. Trump narrowly won last year, could be a reflection of voters’ views on the president’s gutting of the federal work force, his crackdown on illegal immigration and his moves to purge diversity, equity and inclusion initiatives.“It’s a big race,” Mr. Trump said of the Wisconsin judicial contest on Monday while signing executive orders in the Oval Office. “Wisconsin is a big state politically, and the Supreme Court has a lot to do with elections in Wisconsin.”Mr. Trump is also expected to reveal the details of his reciprocal tariff plan on Wednesday. He has labeled it “Liberation Day,” saying the nation will finally break free of past trade relationships that he argues have cheated the United States. Investors, however, are growing more concerned that the tariffs could fuel inflation and slow consumer spending, potentially driving up economic anxieties among voters.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Stocks Sink as Trump’s Tariff Threats Weigh on Confidence

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      Stocks in Japan tumbled nearly 4 percent as investors braced for a week of market turmoil caused by an expected announcement of more tariffs.Stocks in Asia tumbled Monday as investors braced for a week of market tumult caused by an expected announcement of more tariffs by President Trump on America’s biggest trading partners.Japan’s Nikkei 225 index fell nearly 4 percent in early trading. Stocks in South Korea and Taiwan were down more than 2 percent.Stocks in Hong Kong and mainland China were mostly unchanged, bolstered by a report signaling that China’s export-led industrial sector continues to expand despite Mr. Trump’s initial tariffs.Futures on the S&P 500, which allow investors to trade the benchmark index before exchanges reopen in New York in the morning, slumped 0.5 percent on Sunday evening. On Friday, the S&P 500 dropped 2 percent on concerns about inflation and weak consumer sentiment.Since taking office a little over two months ago, Mr. Trump has kept investors and companies guessing with his haphazard rollout of what he calls an “America First” trade policy.In some cases, Mr. Trump has imposed tariffs to make imports more expensive in industries like automobiles, arguing that the trade barriers will spur investment and innovation in the United States. He has also used tariffs, and their threat, to try to extract geopolitical concessions from countries. He has further unnerved investors by saying he does not care about the fallout of his actions on markets or American consumers, who will have to pay more for many goods if import prices rise.Over the weekend, Mr. Trump ramped up the pressure, threatening so-called secondary sanctions on Russia if it does not engage in talks to bring about a cessation of fighting in Ukraine. The tactic echoes similar sanctions concerning Venezuela. He said last week that any country buying Venezuelan oil could face another 25 percent tariff on its imports to the United States. The threats over the weekend add to tariffs of 25 percent on imported cars and some car parts set to be implemented this week, barring any last minute reprieve. That’s in addition to previously delayed tariffs on Mexico and Canada, as well as the potential for further retaliatory tariffs on other countries.Adding to investors’ angst is the scheduled release on Friday of the monthly report on the health of the U.S. jobs market. It could provide another reading of how the Trump administration’s policy pursuits are weighing on the economy.Keith Bradsher More

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      Trump Says He ‘Couldn’t Care Less’ if Auto Tariffs Raise Car Prices in the U.S.

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      President Trump has said that “tariffs are the greatest thing ever invented.” For someone who once called himself a “tariff man,” tariffs are the solutions to many economic problems.He has argued that imposing tariffs would protect American factories, spur manufacturing, create new jobs and bend uncooperative governments to his will. Since his inauguration, while imposing and then suspending and then imposing tariffs again, Mr. Trump has upended the global trading system.But over that time Mr. Trump has also begun conceding that tariffs could cause financial discomfort for Americans. That possibility came up in stark terms in an interview with NBC’s “Meet the Press” from Saturday, when Mr. Trump said that he “couldn’t care less” about the prospect of higher car prices.The president repeated the sentiment twice when asked about the 25 percent tariffs on imported cars and auto parts that he has promised will go into effect on Thursday. He told the NBC News host Kristen Welker that the tariffs were permanent, and that he would encourage auto companies and their suppliers to move to the United States.In one exchange, Ms. Welker asked Mr. Trump if he was at all concerned with the effect of tariffs on car prices, which experts have said could go up by thousands of dollars. “No, I couldn’t care less,” he said, “because if the prices on foreign cars go up, they’re going to buy American cars.”After the interview, an aide to the president told NBC that Mr. Trump was referring to the increase in foreign car prices.While the White House sought to emphasize foreign-made vehicles, the tariffs will affect American companies like Ford Motor and General Motors, which build many of their vehicles in Canada and Mexico. Nearly half of the vehicles sold in the United States are imported, according to S&P Global Mobility data, and almost 60 percent of auto parts in cars assembled in the country.A study by the Yale Budget Lab, a nonpartisan research center, forecast that tariffs would cause vehicle prices to increase by an average of 13.5 percent — an additional $6,400 to the price of an average new 2024 car.On Sunday, Shawn Fain, the president of the United Automobile Workers union, said that the tariffs were indeed a “motivator” for carmakers to bring jobs back to the United States. But, he said on CBS’s “Face the Nation,” they were not an “end-all solution” to help American auto workers. If jobs are being brought back to the United States, Mr. Fain said, they need to be “good paying union jobs that set standards.”Peter Navarro, a senior trade adviser to Mr. Trump, defended the tariffs and said they would raise about $100 billion, which would translate to tax credits for people who buy American cars. He, too, told Americans not to worry about the effects of the tariffs.Instead, he said on Sunday, they should “trust in Trump.” More

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      Trump Auto Tariffs: How Major Car Brands Would Be Affected

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      The tariffs on cars and auto parts that President Trump announced on Wednesday will have far-reaching effects on automakers in the United States and abroad.But there will be important differences based on the circumstances of each company.TeslaThe company run by Mr. Trump’s confidant, Elon Musk, makes the cars it sells in the United States in factories in California and Texas. As a result, it is perhaps the least exposed to tariffs.But the company does buy parts from other countries — about a quarter of the components by value in its cars come from abroad, according to the National Highway Traffic Safety Administration.In addition, Tesla is struggling with falling sales around the world, in part because Mr. Musk’s political activities and statements have turned off moderate and liberal car buyers. Some countries could seek to retaliate against Mr. Trump’s tariffs by targeting Tesla. A few Canadian provinces have already stopped offering incentives for purchases of Tesla’s electric vehicles.General MotorsThe largest U.S. automaker imports many of its best selling and most profitable cars and trucks, especially from Mexico where it has several large factories that churn out models like the Chevrolet Silverado. Roughly 40 percent of G.M.’s sales in the United States last year were vehicles assembled abroad. This could make the company vulnerable to the tariffs.But unlike some other automakers, G.M. has posted strong profits in recent years and is considered by analysts to be on good financial footing. That could help it weather the tariffs better than other companies, especially if the levies are removed or diluted by Mr. Trump.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Floats Chinese Tariff Cuts in Exchange for TikTok Deal

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      President Trump on Wednesday raised the possibility that he could relax steep upcoming tariffs on China in exchange for the country’s support on a deal to sell TikTok to a new owner supported by the United States.Acknowledging that Beijing is “going to have to play a role” in any transaction, Mr. Trump signaled to reporters at the White House that he could be open to negotiation. “Maybe I’ll give them a little reduction in tariffs or something to get it done,” he said.Under a law enacted before Mr. Trump took office, the Chinese-based parent company of TikTok must either sell the social media app’s U.S. operations or face what essentially amounts to a domestic ban. Lawmakers adopted that policy in response to growing, bipartisan concerns that the app posed threats to U.S. national security, which TikTok denies.Congress originally set a January deadline for its ultimatum. But no sale occurred, prompting Mr. Trump — as one of his first executive actions — to delay enforcement of the law for 75 days in the hopes of securing a buyer.The new deadline arrives on April 5, just three days after Mr. Trump separately plans to announce what he has described as “reciprocal” tariffs, imposing new duties on foreign nations based on the trade barriers that they erect to U.S. imports. The president has already subjected Chinese goods to a 20 percent tariff, on top of those he enacted during his first term in office.“Every point in tariffs is worth more than TikTok,” Mr. Trump said about the prospects of a negotiation, adding: “Sounds like something I’d do.”Mr. Trump on Wednesday said he could issue another order that grants the government additional time to find a buyer for TikTok, stressing the goal is an outcome “that’s best for our country.” The president has raised the possibility that the U.S. government could acquire a stake in the app.”If it’s not finished, it’s not a big deal. We’ll extend it,” Mr. Trump said.Chinese officials, for their part, maintain that any sale or divestiture must comply with local export laws, potentially giving Beijing power over any arrangement brokered by Mr. Trump. More