Overview

• The American Enterprise Institute (AEI) uncovered a significant mathematical error in the Trump administration's tariff formula, inflating rates by a factor of four.
• The error stems from using retail price elasticity instead of import price elasticity, leading to tariffs far higher than intended, such as 46% on Vietnam instead of 12.2%.
• Economists argue the formula lacks grounding in economic theory or trade law, raising concerns about the administration's methodology.
• The tariffs, implemented on April 2, 2025, have reportedly caused a $6.6 trillion loss on Wall Street, intensifying criticism of the policy's economic impact.
• Agriculture Secretary Brooke Rollins defended the tariffs but admitted she had not reviewed the AEI report, while an anonymous official claimed the administration prioritized 'big numbers' to project strength.