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Trump's Tariff Formula: Artificial Intelligence or Policy?

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by Giorgi Kostiuk

19 hours ago


President Donald Trump's introduction of a new tariff formula based on trade imbalances has sparked netizen debates over potential AI involvement.

The Tariff Formula and Its Details

Trump's new tariff calculation formula, detailed by the USTR, is based on trade imbalances instead of matching tariff and barrier levels set by other countries. The tariff rate is calculated by taking a country's trade surplus with the US as a percentage of its total exports, then dividing that by two. For instance, China had a $295 billion trade surplus with the US in 2024, leading to a tariff rate of 34%.

Role of AI in the New Formula?

After the announcement, netizens speculated that the new tariff formula might have been developed using artificial intelligence. Some users were able to simulate the same logic using the ChatGPT chatbot, raising questions about AI's involvement in its creation.

The United States and Trade Policy

A February memorandum called for an analysis of trade relationships, covering tariffs, taxes, and other barriers. Trump's tariff formula is seen as an attempt to tackle the country's trade deficits, highlighting a shift in US trade policy.

Trump's tariff formula has prompted debate and criticism. It remains unclear whether AI played a role in its creation, but its focus on trade imbalances marks a new chapter in US international trade policy.

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