Trump’s tariff formula used the wrong value in calculations, conservative thinking Tank says. ‘This thing was falsified.’

• Conservative thinking center When using import price elasticity in the White House, he measured the retail price elasticity. This error was about four times higher to have tariff consequences.

This formula White house used calculate Its latest tariff is based on a mistake that is about four times the decisions of what they need to be about.

In the American Institute of Enterprise (AEI), two scientists, a conservative thinking center, found the wrong value when the price of the White House’s price change is changed. The correct version of the formula uses the price changes in the price of imports, which means how much a US-based company has to do to get better than a foreign seller. Instead, the White House changed in retail price change, which consumers pay.

This is a fourth factor, according to AEI, this is a fourth factor because the White House estimated the elasticity of import prices in 0.25 at 0.25.

“This is the pretty Bush League,” said Stan Varuge, one of the AEI friends Fortune on the phone call. “Wait for a higher level of professionalism for such a great policy.”

Varuger and the same, according to Kevin Corinfe, the use of the wrong value, the formula was wrong.

“Now our opinion is that there is no foundation in the economic theory or trading laws of the management,” Corinth and Teauger wrote. “However, we must wait to wait for the calculations of White House officials to carefully to claim that it is a healthy basis for the US trade policy.”

Another AEI economist, Derek scissors, said that the management did not make mistakes, deliberately fed the math to get the results they want.

“This thing,” This thing, “Scissors gossip Monday CNBC. “President Trump was a manipulated way to get very high tariffs because he wants to announce very high tariffs.”

In the original report, Corinth and Veger said they hoped to reduce tariff rates as a result of the discovery of the White House. “Hopefully, they will soon make mistakes: Liberalization of trade will provide a very need to the economy and still help us to give up a recession.”

Three trading days since President Donald Trump declared USA New tariff mode Saw markets throughout the world tank. In the United States, Dow Jones, S & P 500 and Half The composite is all squares. Shares in Asia, Japan and Hong Kong, Monday, after the issuance of Trump sharpen the ongoing trade war. While in European shares fell approximately 4.5% Monday, after a waste of last week’s wasteful performance.

The calculations used by the White House were somewhat controversial after the amounts of discounted “mutifiers” are based on A. Simple formula The United States has divided the US trade deficit with a foreign country with a foreign country, and the number resulted in two results and used as a tariff rate for the specified country.

Although not wrong, the formula was suspected, Corinth and Stan Teacer. The formula was “does not make economic meaning.” “Trade deficit with a given country is not only tariffs and non-tariff trading barriers, but also international capital flow, supply chains, comparative preference, geography, etc.

Given that the Tariffs of Trump management are calculated as mutual tariffs, the analysts and investors have expected to be based on a careful examination of non-trade barriers related to trade and trade barriers. Instead they were based on the formula Washington Post report President Donald Trump insisted in using a person.

Trump’s Private Landscapes in Tariffs was the main cause of the teafer’s appearance, the last tariff policy.

“Hathrooms, the 1980s, the 1980s were Trump Protectionist, and he thinks that the cruel warning and trade surpluses are profit.” “He simply loves the tariffs. Then you can return them with a little more complex, intellectual rationalization. But this is this rationalization.”

White House, using retail prices instead of retail prices, consumers have made purchasing decisions based on retail sales than wholesale prices. A spokesman added that the tariff rates should actually be larger.

Corinth and Veuger pointed research Harvard Business School Professor Alberto Cavallo US Trade Representation (Ustr) memo The difference between the difference between the tariff formula, the difference between the calculations, retail prices and explained the difference between import prices. Cavallo’s work “clarifies this difference” wrote.

Cavallo himself also addressed the fact that the work in the UTR report referred to.

“It’s not quite clear how they used our findings,” Cavallo wrote in x last week. “According to our research, the elasticity of import prices in relation to the tariffs is about 1. If this figure is used instead of 0.25, mutual tariffs will be less than four times less.”

If this version of the formula is accepted, sharply reduce the tariff rates applied to countries. For example, the ratio of 49% of the Cambodian in the Cambodia would fall to 13% and passed from 46% to 12.2% of Vietnam. The vast majority of countries will be exposed to a minimum of 10% of the White House, which is part of a new politics of the White House.

This story was first displayed Fortune.com

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