The Office of the United States Trade Representative (USTR) has issued an explanation of the approach to calculating the reciprocal tariffs announced by President Trump on 2 April 2024. As previously reported, this includes a 10% baseline tariff on imports from all countries, as well as reciprocal tariffs on imports from countries with which the U.S. has the largest trade deficits, with rates equal to approximately half of the deemed rates charged on U.S. goods. As explained by the USTR, the rates are calculated as the rate that would, in theory, drive bilateral trade deficits with a particular country to...