Posted by: jgdd April 5, 2025
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Analysts have taken note of the similarities between the Trump administration's formula used to decide the "Liberation Day" tariffs, and the same methods provided by ChatGPT if asked. 🤣🤣🤣🤣🤣
Critics highlighted that ChatGPT and other artificial intelligence chatbots would provide very similar methods for setting tariff levels if they were asked to design a policy.
Newsweek contacted the White House for more information on the impact of the tariff policy via email.
The Context
The White House imposed a 10 percent baseline tariff on all imports, including those from U.S. allies and non-economically active regions, along with higher rates for countries with large trade surpluses against the U.S., on Wednesday. The administration expects the new rates to remain in place until the U.S. narrows a $1.2 trillion trade imbalance recorded last year.
What To Know
After the tariffs were announced, the White House released the formula reportedly used to set the tariffs: dividing the U.S. trade deficit with a given country by the value of U.S. imports from that country, then applying that percentage as a tariff. In some cases, a flat 10 percent rate was used if it was higher.
However, many pointed out that ChatGPT proposes the same approach if questioned on creating a global tariff policy. The White House has not commented on how the formula was created, so the similarities may simply be coincidental.
"I think they asked ChatGPT to calculate the tariffs from other countries, which is why the tariffs make absolutely no sense," political commentator Steve Bonnell wrote on X, formerly Twitter.
"They're simply dividing the trade deficit we have with a country with our imports from that country, or using 10 percent, whichever is greater."
In screenshots, Bonnell showed that he asked ChatGPT the question: "What would be an easy way to calculate the tariffs that should be imposed on other countries so that the US is on even playing fields when it comes to trade deficit?"
Critics highlighted that ChatGPT and other artificial intelligence chatbots would provide very similar methods for setting tariff levels if they were asked to design a policy.
Newsweek contacted the White House for more information on the impact of the tariff policy via email.
The Context
The White House imposed a 10 percent baseline tariff on all imports, including those from U.S. allies and non-economically active regions, along with higher rates for countries with large trade surpluses against the U.S., on Wednesday. The administration expects the new rates to remain in place until the U.S. narrows a $1.2 trillion trade imbalance recorded last year.
What To Know
After the tariffs were announced, the White House released the formula reportedly used to set the tariffs: dividing the U.S. trade deficit with a given country by the value of U.S. imports from that country, then applying that percentage as a tariff. In some cases, a flat 10 percent rate was used if it was higher.
However, many pointed out that ChatGPT proposes the same approach if questioned on creating a global tariff policy. The White House has not commented on how the formula was created, so the similarities may simply be coincidental.
"I think they asked ChatGPT to calculate the tariffs from other countries, which is why the tariffs make absolutely no sense," political commentator Steve Bonnell wrote on X, formerly Twitter.
"They're simply dividing the trade deficit we have with a country with our imports from that country, or using 10 percent, whichever is greater."
In screenshots, Bonnell showed that he asked ChatGPT the question: "What would be an easy way to calculate the tariffs that should be imposed on other countries so that the US is on even playing fields when it comes to trade deficit?"