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| Ronald B. Davies |
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| ''Deriving the Trump tariffs'' |
| ( 2025, Vol. 45 No.2 ) |
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| On April 2, 2025, President Donald Trump announced a wide-ranging set of "reciprocal tariffs" against many of its trading partners. The calculation of these tariffs have elicited a largely negative reaction in part due to the simple formula used to calculate them. In this note, I provide a model which, under the proper assumptions, does indeed result in the administration's formula. I, however, leave it to the reader to judge whether these assumptions are reasonable. |
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| Keywords: Tariffs, Global Supply Chains, Passthrough |
JEL: F1 - Trade: General
F2 - International Factor Movements and International Business: General |
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| Manuscript Received : Apr 06 2025 | | Manuscript Accepted : Jun 30 2025 |
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