United States: Donald Trump’s tariff calculus has garnered scrutiny due to its unconventional application, exemplified by the imposition of duties on distant, desolate isles populated primarily by penguins. However, the ramifications of this policy are far from trivial, particularly for nations grappling with economic fragility.

The underlying principle is deceptively simple: quantify the US trade imbalance with a given nation, divide that figure by the total value of that country’s exports to the United States, and then convert it into a percentage. This resultant figure is subsequently halved, establishing the baseline for the US “reciprocal” tariff, with a floor of 10%.

This algorithm yielded a 10 percent tariff on the Australian-administered Heard Island and McDonald Islands—volcanic outposts in the Antarctic devoid of any substantive economic enterprise beyond their avian inhabitants. While this particular instance may appear negligible, the toll on struggling economies is profound. Madagascar, a nation where the per capita GDP barely surpasses USD 500, now contends with a staggering 47% levy on its USD 733 million worth of exports—including vanilla, metals, and textiles—to the US, as reported by Reuters...

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