How Trump's "Liberation Day" Tariffs Were Calculated

President Trump just dropped a bombshell Wednesday with a flat 10% tariff on all imports. But he didn't stop there - countries he considers "bad actors" on trade got hit even harder. The stated goal? Boosting American manufacturing and raising some serious cash.

The Tariff Formula Explained

The math behind these tariffs is surprisingly straightforward:

• Take a country's trade surplus with the US
• Divide by their total exports to us (using 2024 data)
• Cut that percentage in half to get the tariff rate

If we're already winning the trade battle with a country (or it's roughly even), they still get slapped with the baseline 10% tariff.

Some Real Examples

• China: With a massive $295 billion surplus on $438 billion in exports, they're facing a whopping 34% tariff
• UK: Since they actually have a trade deficit with us, they escaped with just the standard 10%

Small Businesses Taking the Hit

This is hitting Main Street hard:

• Mom-and-pop shops are watching their already thin margins get squeezed by higher costs
• Unlike the big guys, they can't strong-arm suppliers for better deals
• Many don't have the cash or connections to quickly find American alternatives
• They're caught in a brutal dilemma: absorb the costs (and potentially go under) or raise prices (and potentially lose customers)

Why We Need to Rally Around Small Businesses

Let's be real - small businesses are the backbone of our economy:

• They generate nearly half of all economic activity in America
• Two out of every three new jobs come from small businesses
• When you spend at a local business, that money stays in your community
• Their creativity and hustle are exactly what we need during major economic shakeups
• Lose our small businesses, and we lose the unique character that makes our towns and cities special

Market Meltdown

Wall Street didn't take the news well. We're talking about the worst sell-off since the COVID crash:

• Factory shutdowns are already happening across Canada and Mexico
• Markets tanked, wiping out $3.1 trillion in value (S&P down 4.8%, Dow down 4.0%, Nasdaq crushed at 6.0%)
• Our trading partners aren't taking this lying down - China, Canada, and the EU are all threatening retaliatory tariffs, while others are scrambling to negotiate deals

information via the donut