Trump's Controversial Tariff Policy

Mirrors AI Chatbot Suggestions, Sparking Economic Concerns

President Donald Trump's abrupt announcement of sweeping U.S. tariffs—a 10% baseline on all imports, plus elevated rates targeting specific countries—has triggered market turmoil and consumer anxiety. The policy, branded as "Reciprocal Tariffs," appears rooted in an oversimplified formula resembling recommendations from AI chatbots like ChatGPT, Gemini, Claude, and Grok. Economist James Surowiecki reverse-engineered the White House’s calculations, finding they align with a basic method: dividing a country’s trade deficit with the U.S. by its exports to the U.S., then halving the result—a approach he dismisses as "extraordinary nonsense."

While the White House disputes this, Politico notes its published formula closely mirrors Surowiecki’s critique. Notably, multiple AI chatbots, when prompted for an "easy" solution to trade deficits, consistently proposed variations of this flawed calculation. For instance, Grok and Claude suggested halving the tariff rate for "reasonable" outcomes, mirroring Trump’s "discounted" approach. Though the chatbots caution against real-world complexities (Gemini warned of "substantial negative consequences"), their outputs starkly overlap with the administration’s strategy.

Though unconfirmed whether AI directly shaped the policy, the coincidence raises questions about hasty, AI-influenced decision-making. Critics, including economists, argue tariffs are ineffective for balancing trade deficits and risk sparking global retaliation. With the tariffs slated to take effect April 5th, the world braces for potential disruptions to trade networks and consumer markets, underscoring the dangers of oversimplified economic policies—whether human or algorithmically inspired.