The problem is the White House used 0.25 as the elasticity of import prices. Per the research paper the USTR cited in the tariff determination, the elasticity is actually closer to 1, or 0.945 to be precise. The AEI authors say the White House may have used the elasticity of retail prices instead of import prices.
The formula used by the Trump administration to levy reciprocal tariffs contains a serious math error that over-inflates the impact by about a factor of four, per economists at the conservative think tank American Enterprise Institute.
-- Axios (@axios.com) April 6, 2025 at 6:48 PM
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MAGA doesn't like intellectuals.
Stupid thinking is a bonus for them.
Everyone wants to just fit in.
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