Trump administration miscalculated tariffs, actual tax rates may be overestimated by four times

Odaily Planet Daily News: Scholars from the American Enterprise Institute (AEI) found that the tariff policy recently announced by the Trump administration contained a major calculation error. The White House mistakenly used the retail price elasticity (0.25) in the formula instead of the import price elasticity (0.945) that should be used, resulting in the tariff rate being overestimated by about four times. If the correct value is used, Cambodia's 49% tariff rate will drop to 13%, Vietnam's 46% will drop to 12.2%, and most countries will even drop to the 10% minimum tariff rate set by the White House. The error has caused significant market fluctuations, with stock markets in the United States, Asia and Europe all falling significantly. Some AEI economists accused the White House of deliberately manipulating this to achieve the high tariffs expected by Trump. The White House argued that the use of retail prices was reasonable and said that the actual tariff rate should be higher.