Understanding Trump's "Reciprocal Tariffs": A Closer Look at the Formula Behind the Headlines
Henrique Mota de Aguiar Henrique Mota de Aguiar

Understanding Trump's "Reciprocal Tariffs": A Closer Look at the Formula Behind the Headlines

U.S. President Donald Trump has reintroduced a controversial tariff mechanism as part of his 2025 campaign, based on a "reciprocity formula" designed to counteract trade imbalances. While politically appealing, the methodology is economically simplistic and potentially destabilizing. Here's how it works — and why investors should pay close attention.

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