Stocks began the month on a steep downward trajectory, experiencing losses reminiscent of the early pandemic lockdowns. However, by the end of the month, shares had managed to erase most of the early losses. What happened? Two primary events dominated the conversation during the month. First, the imposition of ‘reciprocal tariffs on April 2, and […]
Tariff talk dominates Read More »
After the market closed on Wednesday, April 2, the President announced new “reciprocal” tariffs on nearly every nation. How were tariffs calculated? Figure 1: The Tariff Formula In plain language, let’s use China as an example (WSJ). Divide the U.S. 2024 goods-trade deficit of $295 billion by the amount the U.S. imported from China—$439 billion. That
What is a tariff? The International Trade Administration defines a tariff as “a tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight.” This tariff, or tax, is “paid to the U.S. Customs and Border Protection Service at the border by a U.S. broker representing a U.S. importer,