Elon's Greatest Invention... Hidden in South Memphis?

Tech legend Jeff Brown recently traveled to the industrial zone of South Memphis to investigate what he believes will be Elon's greatest invention ever... Yes, even bigger than Tesla or SpaceX.

Trump's tariffs aren't strictly reciprocal. Here's how he calculated them

WILL WEISSERT
April 03, 2025

WASHINGTON (AP) -- President Donald Trump promised tariffs that would raise U.S. import taxes high enough to mirror what other assess as trade penalties on American goods.

What he's actually imposing is based on far more complicated math.

Here's a look at how the White House got its numbers:

Why do the new tariff rates often differ by country?

The Trump administration has declared an "economic emergency" to bypass Congress and impose a 10% tariff on nearly all countries and territories. It has set even higher levies for about 60 nations that it says are the "worst" offenders.

The 10% global tariffs take effect at 12:01 a.m. Saturday. The higher tariffs set for specific countries are due to kick in at one minute past midnight on April 9.

Among the so-called worst offenders is China, which Trump argues protect its producers through "malicious" trade practices in addition to tariffs. Those efforts include actions such as imposing value added taxes on all goods, dumping overproduced products on markets to artificially deflate prices, or manipulating currency.

To determine how much higher those nations' rates should be, the White House says it calculated the size of each country's trade imbalance on goods with the United States and divided that by how much America imports from that nation.

It then took half that percentage and made it the new tariff rate.

Why not just charge reciprocal rates?

The White House says its calculations kept new tariffs from going even higher for many countries and demonstrate that Trump is being "kind" to global trading partners.

The administration maintains that creating a baseline levy with few exemptions is necessary to keep China and others from skirting the new tariffs by manufacturing goods and then shipping them to Vietnam, Cambodia, Mexico or elsewhere to then be sent to the U.S.

That's why the White House list of tariffed locations includes obscure places like the Heard and McDonald Islands, which are uninhabited. They are 2,550 miles (4,100 kilometers) from the coast of mainland Australia, which claims them as a territory.

Is every country affected?

No. Canada and Mexico are excluded because they already are facing 25% taxes on most imported goods that Trump announced last month, in an attempt to force both to crack down on fentanyl smuggling into the U.S.

The White House originally said all others would be affected by at least the 10% tariff. But administration officials clarified on Thursday that countries already subject to stiff U.S. sanctions -- for example, Russia due to its invasion of Ukraine, as well as Iran, North Korea, Cuba, Belarus and Venezuela -- will not face the new, 10% global base tariff.

Official said that is because sanctions and other existing barriers mean the U.S. has so little trade with those places that deficits are minimal.

Why is Trump doing this?

The president has spent months insisting America was at its wealthiest at the end of the Gilded Age in the late 1800s and early 1900s, when it imposed high tariffs as the key means to generating revenue for the federal government.

Trump even suggested Wednesday that the U.S. moving away from higher tariffs and toward a federal income tax in 1913 helped trigger the Great Depression of the 1930s -- a claim that economists and historians roundly reject.

A more contemporary explanation might be found in Project 2025, a comprehensive blueprint compiled by leading conservatives about how to shrink the federal workforce and push Washington further to the right. It spelled out how Trump might impose high tariffs around the globe, giving his administration more room to negotiate lower levies with trading partners in exchange for U.S. priorities.

White House officials insist the new tariffs are more about closing trade deficits, stimulating U.S. manufacturing and generating government revenue than eventually negotiating new trading deals.

But Trump has shown he is willing to back off on threats of tariffs in exchange for offers of concessions. His administration has said the president is always ready to make deals, a sign the new tariffs may prove to be more bargaining chip than permanent policy.

Why do US trade imbalances matter?

American trade policy created a U.S. trade imbalance worth $1.2 trillion last year, a gap that some experts believe should be addressed in order to ensure the country's long-term economic strength.

But many economists say the trade imbalances that Trump is looking to correct are based on more than countries just using high tariffs or protectionist trade practices to boost their own exports. Basing the White House's tariff math solely on trade deficits, for instance, fails to take into account U.S. consumer demand.

Americans relish buying BMWs assembled in Germany, as well as French wine and coffee beans from Guatemala, and their spending can fuel trade imbalances regardless of the tax and tariff policies of the countries producing those goods.

That means any attempt to close U.S. trade gaps by tariffs will likely mean increasing the cost of imported goods that Americans are buying, which in turn could hurt the economy because of increased inflationary pressures.

___

Associated Press writers Josh Boak and Zeke Miller contributed to this report.

Continue Reading...

Popular

Trump's new energy order puts states' climate laws in the crosshairs of the Department of Justice

HARRISBURG, Pa. (AP) — A new executive order from President Donald Trump that's part of his effort to invigorate energy production raises the possibility that his Department of Justice will go to court against state climate change laws aimed at slashing planet-warming greenhouse gas pollution from fossil fuels.

Bitcoin, Ethereum, Dogecoin Tumble As Trump Ups China Tariffs, Scraps IRS Rule In Nod To Crypto Voters: Rising Yuan Could Boost Altcoins, Says Analyst

The cryptocurrency market cap dropped 2.80% in 24 hours to $2.54 trillion following President Donald Trump‘s sweeping tariff announcement, imposing a 145% duty on Chinese imports and a 10% universal tariff on most other goods.

Biggest Dividend Payout in U.S. History: $1 Trillion up for Grabs! - Ad

Trump just launched a $1 trillion National Investment Fund to replace income taxes and send direct payouts to Americans. You could claim up to $21,307--before the first public checks go out. This is historic. Act now to be first in line.

CBOE Loses Its Edge? Analyst Downgrades Stock On Valuation Worries, Volume Slowdown

BofA downgrades CBOE to Neutral, citing high valuation and expected trading volume slowdown in the second half of 2025.

Anthony Scaramucci Says 26 Years Ago Warren Buffett's Amazon Caution Cost Him Millions: Former Trump Official Sees Today's AI Hype As History Repeating

Anthony Scaramucci shared how Warren Buffett's caution in 1999 led him to miss out on millions in Amazon stock, and how he believes the current skepticism surrounding AI mirrors that same missed opportunity.

Trump Signals "End of M.A.G.A." - Ad

Trump's new mission: Make America Wealthy Again. And according to ex-CIA advisor Jim Rickards, the U.S. is sitting on a $150 trillion fortune--enough to make every family millionaires. Discover how this hidden wealth could soon change everything.

One Tech Tip: Protecting your device privacy when crossing borders

LONDON (AP) — Planning an international trip? Travelers should prepare for the possibility of extra scrutiny of their phones when crossing borders, especially when entering the United States.

The Stock Market Is Splitting in Two... - Ad

Wall Street legend Louis Navellier just issued a stark warning...He says we're at the very early stages of an historic rupture in the stock market. In fact, the early cracks have already started to appear... Are you prepared for what's coming?

Walmart's Resilience Shines With Broad EBIT Forecast And Strong Growth Engines, Analyst Says

Walmart Inc (NYSE:WMT) maintains strong fiscal 2026 guidance and expands its EBIT outlook for Q1 amid changing product trends and rising costs. The retail giant's digital and e-commerce growth, along with robust domestic sourcing, supports long-term strength, says BofA.

The US Bank executive killed in a plane crash died of blunt-force injuries

MINNEAPOLIS (AP) — The U.S. Bank executive killed when his in suburban Minneapolis died of blunt-force injuries, a medical examiner ruled Tuesday.

The Gold Rush of the Decade? - Ad

A project with over 6 million ounces (estimated $16B at today's prices) of resources is drawing serious attention. Early investors are eagerly awaiting the massive company news.

Critics Hit Trump for Golf Trip Amid Tariff Chaos, Troop Deaths: 'He Fiddles While Rome Burns'

President Trump came under fire from Democrats on Friday after he spent the day at his Florida golf club amid economic chaos and a solemn military event.

Ming-Chi Kuo Warns Semiconductor Stocks Face Near-Term Risks Under Trump Tariff Policy: Even Apple's $500 Billion US Investment Didn't Buy It Leniency

Ming-Chi Kuo warns that Trump's semiconductor tariffs pose significant risks for stocks, highlighting that even Apple's $500 billion U.S. investment didn't secure leniency from the aggressive policy.

Magnificent 7 Meltdown? Use This $2K Tool for Free Before the Next Drop - Ad

$760 billion vanished from the Magnificent 7 in one day. We saw it coming--and built a system that's doubled money through 33 years of market chaos. Now, during this sell-off, you can access it free (normally $2,000). See how it works before the next move.

Immigration officials raid Washington state roofing company and arrest over 3 dozen people

BELLINGHAM, Wash. (AP) — Federal immigration agents arrested 37 people Wednesday during a raid at a roofing business in northern Washington.

Paris Hilton's nonprofit gives $25,000 grants to women-owned small businesses hit by the Eaton Fire

LOS ANGELES (AP) — There are brief moments when Annisa Faquir forgets that the Little Red Hen Coffee Shop, the Altadena diner her grandmother founded a half century ago, burned down in the .

No.1 Opportunity for 2025 [Take Action Now!] - Ad

Starlink's potential IPO Could Be the Biggest in History--Silicon Valley insider James Altucher has uncovered a way to profit BEFORE the IPO--with as little as $50. Musk's $180B giant is set to launch--will you miss out? Claim your spot before it's too late.

States team up to defend green transportation projects targeted by Trump

CHICAGO (AP) — Hundreds of bicycle advocates were at an annual summit this month in Washington, D.C., when their cellphones lit up over breakfast with an urgent email warning that President Donald Trump's had just halted federal for bike lanes.

Tesla is suing to open dealerships in Wisconsin. It's become a big deal in the Supreme Court race

MADISON, Wis. (AP) — Tesla CEO Elon Musk and political groups he backs are pouring millions of dollars into the race for a seat on as the electric vehicle company sues to overturn a state law that prevents it from opening dealerships — a case that eventually could make its way to the high court.

Brace Yourself for Jeff Bezos' "Amazon Helios" - Ad

Amazon delivers 20 million packages a day... powers some of the most popular websites... delivers medication to half of the U.S. population... and even produces award-winning films and TV shows. But a Wall Street legend -- twice featured on 60 Minutes -- predicts that "Amazon Helios" will be bigger than all of those... COMBINED.

10 IRA mistakes to avoid

From contributions to conversions to distributions, don’t fall into these traps when managing your IRA.

Why This Gold Co. Has Experts Watching Closely - Ad

Some of the best minds in gold are backing this project, and a major milestone is approaching. This is the perfect storm where price, potential and experience combine.

Trump Yanks Security Clearances From Biden, Harris, Clinton, and Other Foes

President Trump has rescinded security clearances and access to classified information from a list of high-profile individuals.

Tiny Caribbean territory offers cash, plane tickets and a hotel stay to fight brain drain

SAN JUAN, Puerto Rico (AP) — The Dutch Caribbean territory of St. Maarten is offering cash, plane tickets and an extended hotel stay to attract professionals and students back home.

Elon's Greatest Invention... Hidden in South Memphis? - Ad

Tech legend Jeff Brown recently traveled to the industrial zone of South Memphis to investigate what he believes will be Elon's greatest invention ever... Yes, even bigger than Tesla or SpaceX.

Bitcoin 11% Away From Falling Below Strategy's Average Buying Price, But Michael Saylor's Confidence In Apex Crypto Remains Intact

Strategy Inc. (NASDAQ:MSTR) risked incurring unrealized losses on its Bitcoin (CRYPTO: BTC) purchases, yet co-founder Michael Saylor remains bullish on the apex cryptocurrency.

Cloudflare Acquires Outerbase To Streamline AI App Development, 'Our Goal Is To Make It Easy And Accessible For Any Developer'

The move integrates Outerbase's user-friendly database tools with Cloudflare Workers, Durable Objects and the D1 database, helping developers manage backend data without deep SQL knowledge.

New Study: 50 Stocks Will Crash While 7 MAGA Stocks Will Soar - Ad

If you own any of these stocks -- directly or through mutual funds -- I want to encourage you to sell them before April 30th. I've compiled all 50 companies in my "MAGA Blacklist" report. Your retirement could depend on seeing this list.

Dow wants to power its Texas manufacturing complex with new nuclear reactors instead of natural gas

Dow, a major producer of chemicals and plastics, wants to use next-generation nuclear reactors for clean power and steam at a Texas manufacturing complex instead of natural gas.

Maverick Trader Reveals 97% Accurate System - Ad

This man's simple strategy makes money in any market...With a 97% accuracy at hitting winners over the past 8 years!

Trump advisers say 50-plus countries have reached out for tariff talks with White House

FORT LAUDERDALE, Fla. (AP) — Top administration officials said Sunday that more than targeted by President Donald Trump's have reached out to begin negotiations over the sweeping import taxes that have sent , raised fears of a recession and upended the .

China accuses US of unilateralism, protectionism and economic bullying with tariffs

BANGKOK (AP) — China on Monday accused the U.S. of unilateralism, protectionism and economic bullying with tariffs, while calling on representatives of American companies including Tesla, to “take concrete actions” to resolve the tariffs.

Financial "Reset" Could Begin April 15 - Ad

A massive market reset could begin as soon as April 15--and few see it coming. But one algorithm predicted the last 3 major swings and just backtested an 11,340% gain in 46 days. Get free access to the full analysis (normally $2,000) before it's too late.

Rep. Marjorie Taylor Greene bought stocks hit hard by Trump tariffs during the market meltdown

NEW YORK (AP) — Give Marjorie Taylor Greene credit where it’s due: As stocks tanked on tariff fears, she showed her faith in the president not just with words but dollar bills.

Trump's reciprocal tariffs will overturn decades of trade policy

WASHINGTON (AP) — President Donald Trump is taking a blowtorch to the rules that have governed world trade for decades. The that he is expected to announce Wednesday are likely to create chaos for global businesses and conflict with America’s allies and adversaries alike.

Tiny AI Firm Could Outperform NVIDIA - Ad

The Fear & Greed Index shows "extreme fear"--precisely when life-changing wealth is created for those with the right strategy. My elite research team has broken down exactly how to identify the coins with highest rebound potential in this artificially suppressed market.

Dollar Tree, GameStop And 3 Stocks To Watch Heading Into Wednesday

With U.S. stock futures trading mixed this morning on Wednesday, some of the stocks that may grab investor focus today are as follows:

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright finstrategist.com
Privacy Policy | Terms of Service