Trump's Retaliatory Tariffs: A Calculation Error Sparks Economic Storm

In 2025, President Trump announced retaliatory tariffs of up to 50% on nearly every country, based on a formula tied to trade deficits and claimed to be 'reciprocal'. However, this formula contained a significant error, overestimating foreign tariffs and leading to far higher actual US tariffs. This sparked a stock market plunge and recession fears. Experts point out that correcting the formula would drastically reduce the tariffs, but the underlying economic rationale remains questionable.