<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>US President Donald Trump's </span><a href="https://www.9news.com.au/finance/donald-trump-tariffs-economic-impact-australia-explained/a4f2524c-612b-455a-99b3-7162e35f1485" rel="" target="_blank" title="massive tariffs announced on dozens of nations yesterday"><span>massive tariffs announced on dozens of nations yesterday</span></a><span> were pitched as "reciprocal," matching what other countries charge the US dollar for dollar, even taking into account non-tariff barriers like value-added taxes and other such measures.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But the actual calculation the Trump administration used is not reciprocal at all.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Matching countries' tariffs dollar for dollar is an incredibly difficult task, involving poring over each country's tariff schedule and matching a complex array of products, each of which has a different charge for any variants.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/donald-trump-liberation-day-sweeping-trump-tariffs-draw-dismay-calls-for-talks-from-countries-around-the-globe/59829db4-0d5b-45f2-9e4f-2d042005032b" rel="" target="_blank" title=""><strong><span>Trump tariffs shock global economy as leaders weigh retaliation</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Instead, the Trump administration used quite a simple calculation: the country's trade deficit divided by its exports to the US times 0.5. That's it.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The calculation was first suggested by journalist James Surowiecki in a post on X and backed up by Wall Street analysts. The Trump administration later </span><a href="https://ustr.gov/issue-areas/reciprocal-tariff-calculations" rel="" target="_blank" title=""><span>confirmed that was the calculation</span></a><span> it used.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>For example, America's trade deficit with China in 2024 was US$295.4 billion ($467.18 billion), and the US imported US$439.9 billion ($695.71 billion) worth of Chinese goods. </span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/world/donald-trump-tariffs-this-is-how-they-were-calculated/ad0f5c69-8f35-4b68-a5ac-dce926e9a76d" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That means China's trade surplus with the United States was 67 per cent of the value of its exports – a value the Trump administration labelled as "tariff charged to USA".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/mma-event-allegedly-cancelled-police-fears-gangland-hit/cbe857af-df85-4c01-932e-89701a0d385a" rel="" target="_blank" title=""><strong><span>Former UFC fighter claims he wasn't warned of assassination plot</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But it was no such thing.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While these new tariff measures have been framed as 'reciprocal' tariffs, it turns out the policy is actually one of surplus targeting," noted Mike O'Rourke, chief marketing strategist at Jones Trading, in a note to investors yesterday.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There does not appear to have been any tariffs used in the calculation of the rate. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Trump administration is specifically targeting nations with large trade surpluses with the United States relative to their exports to the United States," he added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/donald-trump-liberation-day-mexico-celebrates-dodging-latest-us-tariffs-but-feels-the-effects-of-global-economic/7bb5cfcf-f9b2-4415-9173-83b806222b68" rel="" target="_blank" title=""><strong><span>Major nation celebrates dodging new Trump tariffs</span></strong></a><strong><span></span></strong></div></div><div class="styles__Wrapper-sc-2o34ro-0 cmwkBV"><div class="styles__Column-sc-2o34ro-3 jJDKrX"><a href="/content/2025/04/03/09/20/the-full-list-of-trumps-reciprocal-tariffs"><img alt="US President Donald Trump today announced sweeping reciprocal tariffs for dozens of nations in a &amp;quot;Liberation Day&amp;quot; speech at the White House." sizes="(min-width: 1024px) 636px, (min-width: 768px) 396px, 100vw" src="https://imageresizer.static9.net.au/fJmcm8MqaRXpidBWPXCQ-OF3i9E=/396x223/https%3A%2F%2Fprod.static9.net.au%2Ffs%2Ff4adaefd-6caf-46d7-899f-f151e3f9bb68" srcset="https://imageresizer.static9.net.au/fJmcm8MqaRXpidBWPXCQ-OF3i9E=/396x223/https%3A%2F%2Fprod.static9.net.au%2Ffs%2Ff4adaefd-6caf-46d7-899f-f151e3f9bb68 396w, https://imageresizer.static9.net.au/x8yQRuzP2g-htvXY9q9j40uqzR8=/636x358/https%3A%2F%2Fprod.static9.net.au%2Ffs%2Ff4adaefd-6caf-46d7-899f-f151e3f9bb68 636w"/></a></div><div class="styles__Column-sc-2o34ro-3 jJDKrX"><div class="styles__Headline-sc-2o34ro-4 hpbOlz">The full list of Trump's 'reciprocal' tariffs</div><div class="styles__Button-sc-2o34ro-1 eBjlmW"><a class="styles__ButtonLink-sc-2o34ro-2 hqpklJ" href="/content/2025/04/03/09/20/the-full-list-of-trumps-reciprocal-tariffs">View Gallery</a></div></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The simple calculation used by the Trump administration could have broad implications for countries America depends on for goods – and the global companies that supply them.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Knowing how these rates were calculated highlights that they are generally going to be most severe on the nations that US companies rely heavily upon in their supply chain," O'Rourke said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It is hard to imagine how these tariffs would not wreak havoc upon the profit margins of major multinational corporations."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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