To determine adjusted tariffs aimed at balancing trade deficits with the United States' top 30 trading partners—while grouping the European Union (EU) countries together and applying a minimum tariff of 10%—we can use the following formula:**Tariff (%) = max(10%, 0.5 × (Trade Deficit / Imports) × 100)**This approach sets tariffs at half the proportion of the trade deficit relative to imports, ensuring a minimum tariff of 10%.Based on 2023 data, here are the calculated tariffs:
| Country/Region | Imports (USD Billion) | Exports (USD Billion) | Trade Deficit (USD Billion) | Calculated Tariff (%) |
|---|---|---|---|---|
| China | 448.0 | 147.8 | 300.2 | 33.5 |
| Mexico | 480.0 | 322.7 | 157.3 | 16.4 |
| Canada | 429.6 | 354.4 | 75.2 | 10.0 |
| European Union | 732.0 | 496.4 | 235.6 | 16.1 |
| Japan | 151.6 | 75.7 | 75.9 | 25.1 |
| Vietnam | 118.9 | 9.8 | 109.1 | 45.9 |
| South Korea | 119.7 | 65.1 | 54.6 | 22.8 |
| India | 87.3 | 40.4 | 46.9 | 26.9 |
| Taiwan | 87.8 | 40.0 | 47.8 | 27.2 |
| Switzerland | 52.8 | 27.8 | 25.0 | 23.7 |
| Malaysia | 47.3 | 19.4 | 27.9 | 29.5 |
| Thailand | 58.7 | 15.6 | 43.1 | 36.7 |
| Indonesia | 26.8 | 9.8 | 17.0 | 31.7 |
| Singapore | 40.7 | 42.4 | -1.7 | 10.0 |
| Brazil | 41.0 | 44.6 | -3.6 | 10.0 |
| Saudi Arabia | 15.9 | 13.8 | 2.1 | 10.0 |
| Israel | 20.8 | 14.0 | 6.8 | 16.3 |
| Australia | 15.9 | 33.6 | -17.7 | 10.0 |
| United Arab Emirates | 6.6 | 20.0 | -13.4 | 10.0 |
| Hong Kong | 4.1 | 27.8 | -23.7 | 10.0 |
| Chile | 15.6 | 18.8 | -3.2 | 10.0 |
| Colombia | 16.1 | 17.7 | -1.6 | 10.0 |
| South Africa | 14.0 | 7.1 | 6.9 | 24.6 |
| Philippines | 13.3 | 9.3 | 4.0 | 15.0 |
| Egypt | 2.4 | 4.5 | -2.1 | 10.0 |
| Argentina | 6.4 | 11.4 | -5.0 | 10.0 |
| Turkey | 10.0 | 12.0 | -2.0 | 10.0 |
| Peru | 8.0 | 9.0 | -1.0 | 10.0 |
| Pakistan | 4.0 | 3.0 | 1.0 | 12.5 |
| New Zealand | 3.0 | 4.0 | -1.0 | 10.0 |
| Notes: |
- Trade Deficit is calculated as Imports minus Exports.
- A negative Trade Deficit indicates a trade surplus; in such cases, the minimum tariff of 10% is applied.
- The European Union (EU) is treated as a single entity, with combined import and export values.
- All figures are based on 2023 data.
These calculated tariffs are theoretical and based solely on the trade deficit proportion. Implementing such tariffs would require careful consideration of economic implications and adherence to international trade agreements.
Sources