The Math on Tariffs

Trump’s Tariff Policy has gone through fits and starts, like he is testing the waters.

On April 2, he announced a comprehensive proposal that has caused disruptions and disapprovals.

The markets and “experts” steeped in the status quo are in a frenzy.

Trump’s policy is a revolution in International Trade that will have long term beneficial effects for Fairness in Trade Policy.  It is a Herculean task after creeping concessions to other countries over the last 30 Years.

Cogport offers the following data in support of the need for Change.

The U.S. Imbalance of Trade In 2024:

 Imports:                                                                              $ 4.1 Trillion

Exports:                                                                                $ 3.2 Trillion

Negative Balance of Trade (Deficit):                     $ 900 Billion

What does a $ 900 Billion Deficit mean to the U.S. :

The equivalent of 4.9 Million Jobs if the unfair deficit was eliminated and those products made in the U.S.

SUMMARY:

This is a fast-moving effort to improve the U.S. Economy for the long term, and correct the policy of “Globalization.” 

“Globalization” was a nice name to enable Major U.S. Companies to move production off-shore to use cheap labor and increase their profits.  It cost the loss of good jobs in U.S. manufacturing for the sake of Profits. 

This Paradigm of “Globalization” was negative for the average worker in the U.S. 

Trump is breaking the Paradigm in the best interests of the U.S. Economy which will improve the lot all Citizens, especially low and middle-class wage earners.  That is the way for a Country to work for its People.

Disruption in markets and politics are rampant, but unfounded – as usual.

This will quickly resolve itself as the negotiations and settlements clear.

David Hollaender                                                                          April 9, 2025

Cogport.com                                                                                   Copyright

Background Data:

U.S. GDP in 2024:                                                             $  29.2 Trillion

U.S. Total Employment in 2024:                          159 Million

Average GDP per Employee:                                 $ 183,680 per Employee.

Imports:                                                                             $ 4.1 Trillion

Exports:                                                                             $ 3.2 Trillion

Negative Balance of Trade (Deficit):                      $ 900 Billion