How did the U.S. calculate reciprocal tariff rates, and why are economists baffled?

Apr. 03, 2025 11:26 AM ETS&P 500 Index (SP500), SH, SPY, QQQ, VOO, DIA, IVV, SDS, RSP, SSO, QLD, DOG, QID, DXD, DDM, TQQQ, SQQQ, UPRO, SPXU, UDOW, SDOWCOMP:IND, DJIBy: Anuron Mitra, SA News Editor163 Comments
(4min)
World Map of Trade made of containers with Tariff bomb

Hiroshi Watanabe/DigitalVision via Getty Images

U.S. President Donald Trump's long-awaited reciprocal tariffs plan was finally unveiled on Wednesday, with a baseline 10% tariff applied on imports from all countries and even higher half-reciprocal tariff rates on certain nations.

According to the U.S. Trade Representative (USTR), "reciprocal tariffs are

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