Trump Administration's Tariff Formula Error Fuels Economic Turmoil

Economists reveal major miscalculation inflating tariffs fourfold, with $6.6 trillion reportedly lost on Wall Street as officials defend the policy.

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.