Trump's Flawed Tariff Formula Criticized by Economists | JQJO

Economists criticize President Trump's tariff formula, calling it flawed and based on inaccurate assumptions. The formula, using a trade deficit calculation and a low elasticity rate, resulted in tariffs ranging from 10% to 50%. Experts at the American Enterprise Institute and Cato Institute contend that using a more realistic elasticity rate would drastically reduce tariffs, with no rate exceeding 14%. They point to discrepancies in reported versus actual trade-weighted average tariff rates, such as China's 3% versus the administration's 67% claim.