7 Apr
President Donald Trump’s push for “reciprocal tariffs” has sparked global criticism, as experts increasingly discredit the figures behind his claims. In a recent White House briefing, Trump presented a chart suggesting that countries like China, South Africa, and Bangladesh unfairly benefit from steep tariffs on U.S. goods—some as high as 95%. Based on these alleged imbalances, he proposed matching U.S. tariffs ranging from 30% to 50%. However, economists argue that these figures are based on a flawed formula that conflates trade deficits with actual tariff rates.
Donald MacKay, CEO of XA Global Trade Advisors, called Trump’s data “factually inaccurate,” noting that South Africa’s average tariff is only 7.5%—not the 60% Trump claimed. Professor Johan Fourie of Stellenbosch University added that only a handful of minor U.S. exports to South Africa face tariffs above 60%, such as used clothing and tobacco, totaling just $379,000 in 2023. “It’s basically a rounding error,” said Fourie. He explained that Trump’s method calculates a country’s “tariff” by dividing the U.S. trade deficit by import value—a metric unrelated to official trade policy.
Lars Jensen of Vespucci Maritime agreed, stating: “The number listed is not a tariff. It’s simply the trade deficit divided by the import volume.” Startup investor Mzamo Khuzwayo echoed this, mocking the administration’s oversimplified math: “They decided that 60% somehow represents the tariffs we charge.” Analysts warn that such misconceptions could lead to unnecessary trade conflict and economic disruption.
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source: freightnews.co.za
