China's tariffs on US goods is not 54%

Reciprocal Tariff Formula: A key innovation this term is the "reciprocal tariff" policy. The administration calculates a country’s trade barriers by dividing the U.S. trade deficit with that country by its exports to the U.S., then sets the U.S. tariff at half that rate. For example, with China’s 2024 goods deficit at $295 billion and imports at $439 billion, the calculated barrier is 67%, leading to a 34% reciprocal tariff—added to a prior 20% tariff, totaling 54%. This formula targets around 60 countries identified as trade offenders.