US President Donald Trump has announced steep tariffs on its trade partners depending upon the imbalances, rattling the global markets. The brain behind this tariff formula, however, remains a mystery.
“Trump used everyone as a sounding board until the very last minute,” a White House official told the New York Post. They added that the individual responsible for developing the formula to address trade imbalances—focusing on more than just tariffs— remained a “mystery to everyone I ask or they’re keeping a secret.”
Conflicting statements have further muddled the issue, with some offering contradictory clues about who was responsible. However, senior White House officials on Wednesday pointed to the council of economic advisers , led by economist Stephen Miran, as the group that determined the rates.
“The numbers have been calculated by the Council of Economic Advisers using very, very well established methodologies from the International Trade economic literature as well as policy practice. The model they use is based on the concept that the trade deficit that we have with any given country is the sum of all the unfair trade practices, the sum of all cheating,” the Post quoted an official saying.
However, on Thursday, chief White House economist Kevin Hassett said that Greer’s office was the primary force behind the initiative. “What happened was that the US Trade Representative looked at where the trade deficits were and adjusted the tariffs in order to respond,” Hassett said.
Announced during a high-profile event in the White House Rose Garden on Liberation Day, the decision has raised fears of a growing trade conflict.
The new policy imposes a 34% tariff on Chinese goods, 20% on imports from the European Union, and 24% on Japanese products, while most other countries, including Britain, face a standard 10% tariff.
Implemented under the 1977 International Emergency Economic Powers Act, the measures are designed to reduce trade deficits and bolster domestic manufacturing. While Trump argues that the policy is crucial for safeguarding American industries, critics caution that it could lead to economic uncertainty and escalate into a trade war.
“Trump used everyone as a sounding board until the very last minute,” a White House official told the New York Post. They added that the individual responsible for developing the formula to address trade imbalances—focusing on more than just tariffs— remained a “mystery to everyone I ask or they’re keeping a secret.”
Conflicting statements have further muddled the issue, with some offering contradictory clues about who was responsible. However, senior White House officials on Wednesday pointed to the council of economic advisers , led by economist Stephen Miran, as the group that determined the rates.
“The numbers have been calculated by the Council of Economic Advisers using very, very well established methodologies from the International Trade economic literature as well as policy practice. The model they use is based on the concept that the trade deficit that we have with any given country is the sum of all the unfair trade practices, the sum of all cheating,” the Post quoted an official saying.
However, on Thursday, chief White House economist Kevin Hassett said that Greer’s office was the primary force behind the initiative. “What happened was that the US Trade Representative looked at where the trade deficits were and adjusted the tariffs in order to respond,” Hassett said.
Announced during a high-profile event in the White House Rose Garden on Liberation Day, the decision has raised fears of a growing trade conflict.
The new policy imposes a 34% tariff on Chinese goods, 20% on imports from the European Union, and 24% on Japanese products, while most other countries, including Britain, face a standard 10% tariff.
Implemented under the 1977 International Emergency Economic Powers Act, the measures are designed to reduce trade deficits and bolster domestic manufacturing. While Trump argues that the policy is crucial for safeguarding American industries, critics caution that it could lead to economic uncertainty and escalate into a trade war.
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