Yeah, this is really dumb. Calling trade deficits “tariffs charged” is economically illiterate and a misrepresentation at best. It seems to operate under the assumption that we should have balanced trade with every country on Earth, which is nonsensical.For those still unaware:
The column labeled “Tariffs Charged to the USA” for each country in the first image below is not really that. It actually is the US trade deficit divided by the imports into US (for each country based on 2024).
Example: China in 2024 imported (in $billions) 144 from US (a good portion being farm products) and exported 439 to the US.
Those came from here:
The People's Republic of China
U.S.-China Trade Facts U.S. goods and private services trade with China totaled $579 billion in 2012 (latest data available). Exports totaled $141 billion; Imports totaled $439 billion. The U.S. goods and services trade deficit with China was $298 billion in 2012.ustr.gov
So, 439 - 144 = 295 trade deficit in 2024
295 / 439 = 67%
View attachment 172290
That’s why the table has 67% for China. It isn’t because China charged a 67% avg tariff on what it imported from the US in 2024 as those were actually only a small fraction of 67%.
How much were the actual 2024 Chinese tariffs on US goods? To give a good feel for this: Crops like soybeans, corn, and wheat comprise the largest category of exports to China. The US was considered a “most favored nation” in 2024. Thus, per the following table, China’s tariff to the US on soybeans was only 3% and on in-quota corn/wheat was only 1%. Granted, these did increase significantly as retaliatory tariffs to Trump’s tariffs last month. Soybean tariffs increased by 10% to 13% and in-quota corn/wheat increased by 15% to 16%. But even those were still way below 67%.
View attachment 172293
This table came from here:
The People's Republic of China
U.S.-China Trade Facts U.S. goods and private services trade with China totaled $579 billion in 2012 (latest data available). Exports totaled $141 billion; Imports totaled $439 billion. The U.S. goods and services trade deficit with China was $298 billion in 2012.ustr.gov
Thus the reciprocal tariff in the top image’s table of 34% on China is actually not a discount and is really much higher than even the increased (early March) tariffs from China on the US.
Grilled cheese!? Look at money bags over here. We are eating cat food.We had plans to paint the house...redo the kitchen and I told the wife today we aren't doing it. It's grilled cheese and cheetos for dinner until tariffs are lifted.
You guys get cat food?Grilled cheese!? Look at money bags over here. We are eating cat food.
This will be the 3rd bear market in the past 6 years. Very atypical but market has been a casino and agree , a price needed to be paid. Same with our economy. Going to be a very painful period coming up. I personally think it will be several years before ATH’s are seen again. But market will bottom, when…People forget bear markets exist. We've financialized our way out of them for too long. There is no economic policy that can permanently suspended it. The piper will eventually be paid. Problem is, we don't like to take our medicine. So here we are.
I don’t think we have to worry about that. The layoffs, the spillover into private sector is just being seen. Unemployment rate will be well into the 5’s by end of year. We have a perfect storm for a strong bear market.Part of me wants to just pull everything out of market and put like 15% back in as puts. The problem is it just takes Trump saying just kidding and the market will have the biggest shrek dildo of all time.
China retaliated...so that's probably the worst case scenario for tariffs. Maybe things try and put in an interim bottom today. I added NVDA for a swing at 96.60....semis had a bid overnight and NVDA was green before the China news. MegaCap been hit the hardest the past few weeks so would think any bounce would be led by them. Not going to get stubborn and I won't carry any swings overnight.