(438.9-143.5)/438.9 = 67%
------------------------------------------------------- 2024 total U.S. goods trade with China: Approximately $582.4 billion.
(438.9-143.5)/438.9 = 67%
------------------------------------------------------- 2024 total U.S. goods trade with China: Approximately $582.4 billion.
(438.9-143.5)/438.9 = 67%
------------------------------------------------------- 2024 total U.S. goods trade with China: Approximately $582.4 billion.
But if you unpick the formula above it boils down to simple maths: take the trade deficit for the US in goods with a particular country, divide that by the total goods imports from that country and then divide that number by two.
A trade deficit occurs when a country buys (imports) more physical products from other countries than it sells (exports) to them.
For example, the US buys more goods from China than it sells to them - there is a goods deficit of $295bn. The total amount of goods it buys from China is $440bn.
Dividing 295 by 440 gets you to 67% and you divide that by two and round up. Therefore the tariff imposed on China is 34%.