Donald Trump baffles economists with tariff formula

The result of the tariffs, added John Springford, trade economist at the Centre for European Reform think-tank, would not be to eliminate trade deficits but to inflict pain on both poorer countries and US consumers.

“This is a recipe for hammering poorer countries with large trade surpluses with the US, not eliminating US trade deficits with them. Their surpluses will shift to other poor countries who make T-shirts and consumer electronics,” Springford said.

“It will also hurt US consumers, because the pass-through of tariffs is higher than USTR claims. And the appreciation of the dollar will tend to offset the effects, by hurting US exports. In short this is both stupid and destructive.”