[Source/Observer Network, Liu Chenghui] The Trump administration has launched a series of "reciprocal tariffs," causing fluctuations in domestic public opinion in the United States. On April 4, Stephanie Ruhle, host of MSNBC, revealed that Treasury Secretary Bestant is planning to resign due to his inability to tolerate the "absurd reciprocal tariff calculation method" of the Trump administration.

Ruhle stated on the program "Morning Joe" that Trump's disastrous tariff policy has damaged Bestant's "credibility," and he is looking for ways to leave the Trump administration. "Someone told me that he is looking for an exit route and an opportunity to join the Federal Reserve. Because in the past few days, he has indeed been damaging his credibility and career in the market," she said.

Ruhle mentioned that Bestant accumulated $521 million in wealth by managing large-scale hedge funds, and he cannot tolerate Trump's "absurd tariff calculation method." Some critics have criticized this as a "kindergarten-level understanding of international trade."

Ruhle learned from sources that Trump "does not listen" to Bestant's advice, and Bestant can be considered an "outsider" within Trump's inner circle.

She added, "He actually understands how the market works, but what is currently happening will only harm the market."

Bestant himself has not yet responded to these reports.

On April 2, Bestant warned countries not to rush into retaliation.

The Office of the U.S. Trade Representative released a seemingly complex formula on April 2, but essentially used the U.S. trade deficit with various countries as a substitute indicator for its so-called "unfair trade practices," then divided it by the total value of goods exported by that country to the United States, and finally took half of this value to determine the final tariff rate. If there is a trade surplus between the U.S. and that country, the "minimum benchmark tariff" is set at 10%.

Economists have dismissed the crude method used by the Trump administration to calculate the "reciprocal tariff" rates. Analysts pointed out that this method has serious economic flaws and will not achieve the administration's stated goal of reducing bilateral trade deficits to zero.

Industry insiders frankly stated that Trump is like an "economic illiterate," and the tariffs he imposes "have no economic rationality." Tariffs will not change the logic behind America's trade deficit, and the formula used by the Office of the U.S. Trade Representative departs from reality in trade economics.

During Trump's first term, constant internal strife within the cabinet led to frequent changes in officials, involving positions such as Secretary of State, Defense Secretary, Attorney General, and even White House Chief of Staff, greatly limiting the administrative efficiency of the government.

Previously, Bestant was a staunch supporter of Trump. Bestant has known the Trump family for 30 years, and Trump once called him "one of the greatest analysts on Wall Street." Bestant previously invested $3 million in Trump's campaign activities.

The American news website The Daily Beast reported that Trump views tariffs as an effective means of economic retaliation, and he claimed this week that the U.S. has been "plundered, robbed, raped, and looted" by other countries for decades.

In contrast, Bestant's tone was much more restrained. Last October, when he was an economic advisor to the Trump campaign, he described the comprehensive imposition of tariffs as an "extreme position." At that time, Bestant told the Financial Times of Britain: "First escalate to de-escalate later."

When Trump signed the "reciprocal tariff" agreement, Bestant warned countries that retaliatory actions would lead to further escalation of trade wars.

"Calm down, take a deep breath, and do not retaliate immediately," Bestant said. "Let us see how things develop, because if you retaliate, the situation will escalate."

He added: "The direction of a trade war depends on the relevant countries. But remember, from the perspective of trade history, the U.S. is an advantageous trade deficit country, while other countries are trade surplus countries. Traditionally, trade surplus countries always lose in any form of trade war escalation. As an economic historian and professor, I do not recommend this."

On April 3, Trump's "reciprocal tariff" directly led to a "bloodbath" in the U.S. stock market, with major stock indexes falling by 6%, wiping out about $3.1 trillion in market value, marking the largest single-day decline in nearly five years. After China announced countermeasures this week, the U.S. stock market plummeted again: on April 4, the Dow Jones Industrial Average fell more than 2,200 points, with a drop of 5.50%; the Nasdaq fell 5.82%, more than 20% below its all-time high, entering a technical bear market; the S&P 500 index fell 5.97%.

Stephanie Ruhle, who previously served as an executive on Wall Street, said that even among Trump's business supporters, there is very little actual support for these tariffs.

"I cannot find an investor who can propose a meaningful argument for these tariffs. All I hear is, well, this is the president's idea. This is something he has always wanted to do," she said.

This article is an exclusive piece by the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7490067483878113846/

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