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
[image or embed]
MAGA doesn't like intellectuals.
Stupid thinking is a bonus for them.
Everyone wants to just fit in.
Drudge Retort Headlines
Bombs Didn't Destroy Nuclear Sites: US intelligence (66 comments)
Zohran Mamdani Shares Vision for New York City after Primary Victory (64 comments)
Florida to Build 'Alligator Alcatraz' Detention Center for Migrants in Everglades (34 comments)
Rachel Maddow's Blistering Takedown of Trump's Young Counterterrorism Pick (28 comments)
An Angry Trump Decries Israel, Iran for Breaking Ceasefire (28 comments)
Trump Nobel Peace Prize Nomination Withdrawn (24 comments)
ICE is Arresting more non-Criminals than Ever (19 comments)
Trump Rages Through Night Over Leak of Humiliating Iran Flop (13 comments)
McConnell: People Will Get over Medicaid Cuts (12 comments)
WH Senior Aide Stephen Miller Heavily Invested in Palantir (11 comments)