…or I wonder how “reciprocal tariffs” will affect economic policy uncertainty measures.

Figure 1: EPU (green, right scale), 7 day centered moving average Economic Policy Uncertainty (brown, right scale), Trade Policy Uncertainty (green, left scale), 7 day centered moving average EPU (red, left scale). Source: policyuncertainty.com, matteoiacoviello.com.

Who knows what “reciprocal tariffs” are. The language for the 2018  draft Fair Trade and Reciprocal Tariff Act is here. It seems that it’s something like the same tax rate is applied to widgets coming to the US from country X as country X has a tax on widgets coming in from the US… (or maybe it’s the tax revenue).