Knuckleheaded Trump tariff adjustment formula exposed.

Laodicean60 said:

I don't think your rant matches the topic you created. I thought you were going to give us a math class on tariffs instead of more crying.

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What I have noticed about your participation in this thread is a lack of basic comprehension skills.
The math class was given in the very first post, the formula is nothing more than a ratio of a trade deficit over the value of total imports which makes it patently ridiculous as it has nothing to do with addressing tariffs.

Modifying the formula to take into consideration Australia has a trade deficit with America and using American export value in the denominator, it is found using 2024 trade data and dividing the ratio by 2 which is Trump's 'generosity factor', Australia should put a 26% tariff on American exports.

This is assuming of course the formula is relevant to tariffs which it isn't, instead Australia is expected to accept a 10% tariff on its exports!!

Laodicean60 said:

Yep, and they are negotiating.

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No they are not negotiating because of the 90 day pause.
Even before the pause, the Grand Assembly of Imbeciles were in hyperbole mode but provided zero detail on the nature of the negotiations.

Laodicean60 said:

Maybe I've been known for bad comprehension, but most threads start with a topic discussion, not a smorgasbord of rants about Trump. I'm not interested.

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Then why are you even bothering to respond?
You claim negotiations are continuing yet the only detail provided according to Trump are foreign leaders are lining up to kiss his backside.
This is not a rant but a statement of fact, if you want to defend Trump then do it without twisting my posts which is focussed more on the incredibly stupid acts of the administration which is universally acknowledged except for MAGA supporters who live in an alternate reality.

Laodicean60 said:

I'm sorry this makes you jealous.

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I have no desire to kiss Trump’s backside, in your case the blind devotion exhibited, I’m not so sure.

Laodicean60 said:

Your feelings don't make it factual, lol. All because you don't like him, you do the liberal thing of calling names.

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It has nothing to with my feelings, the facts are Trump is an idiot as is most of his cabinet which is also shared by conservative commentators particularly on the subject of tariffs.

Here are some examples:
Ben Domenech: A Fox News contributor, Domenech expressed his disapproval by saying, "I hate tariffs. I think they're stupid... I don't think they help the American economy."
Mona Charen: In a column for the Chicago Sun-Times, Charen referred to Trump's tariffs as "stupid, self-defeating," and indicative of "a stubborn stupidity that threatens to plunge the world into chaos."
The Wall Street Journal Editorial Board: The conservative-leaning publication labeled Trump's tariff actions as "the dumbest trade war in history."
Joe Rogan: The influential podcaster, who had previously endorsed Trump, criticized the tariff disputes with Canada as "stupid" and noted that Canadians "booed us over tariffs" during sporting events.

Here is a prediction for you if this tariff idiocy continues Republicans seeing their constituencies vanishing before their very eyes will be saying the same things.

Laodicean60 said:

Partly true

I love how smart people use economics as a weapon. Now, who's the embicile? Notice the trend.

View attachment 363483

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Why don't you try reading the graph for the appropriate time period in question from 2nd April liberation day to 9th April the pausing of most of the tariffs when there was intense selling on the bond market which pushed up yields. This is clearly indicated in your graph as the slope for this time period is near vertical.

You seem to be unaware that Trump referred to actions on the bond market as "They were getting a little bit yippy, a little afraid," and the point of the pause was to hopefully restore confidence in the bond market and reverse the slide in the share market which as expected was a one day effect.

It is not working for the bond market as the 10 year yield continues to increase.

Let’s look at what has happened to the US bond market for 10 year treasury notes and how much extra interest the US government needs to pay after a one week trading period.
At the start of trading on 7th April the bond yield was at 4.15%, at the end of trading on the 12th of April it had risen to 4.49% indicating a major sell off of bonds during this period.

The yield is the indicator for the fixed interest paid at maturity for 10-year bonds when sold by the US government at auction and is determined by the market, in the current climate where there is a lower demand for buying bonds, yields increase.
On average the government will auction $42 billion dollars of $1000 10-year bonds per month.

For $42 billion in newly issued bonds auctioned at an interest rate of 4.15%.
Annual interest: $42B × 4.15% = $1.743 billion
10-year total = $17.43 billion

For the $42 billion in newly issued bonds auctioned at an interest rate of 4.49%.
Annual interest: $42B × 4.49% = $1.886 billion
10-year total = $18.86 billion

Increase in interest payment which is paid over the life span of the bond.
18.86 – 17.43 = $1.43 billion.

This is why Trump caved in by introducing the 90 day tariff pause, while Elon Musk is engaged in a scorched earth policy, the perceived gains are being lost on the bond market which can get considerably worse if China decides to start selling their sizeable percentage of US debt they possess in 10-year treasury bonds.

What is truly comical is how the Administration are treating the American public as total fools by spin doctoring Trump's backdown as a work of genius.