Summary

President Trump’s latest tariff plan is under fire from a conservative think tank, which says the math behind it is both flawed and misleading. The American Enterprise Institute (AEI) warns that the formula used by the White House drastically overstates the trade barriers imposed by foreign countries — and risks harming the U.S. economy.

President Trump’s latest tariff plan is under fire from a conservative think tank, which says the math behind it is both flawed and misleading. The American Enterprise Institute (AEI) warns that the formula used by the White House drastically overstates the trade barriers imposed by foreign countries — and risks harming the U.S. economy.

The issue:

 The Trump administration’s “reciprocal” tariff formula calculates foreign tariffs based on the U.S. trade deficit — not on actual policy. AEI says this leads to exaggerated numbers, because the formula mistakenly uses retail price data instead of import price data. That misstep inflates estimated foreign tariffs by 400%, resulting in U.S. tariffs as high as 50% — even in cases where trade barriers are low or non-existent.

What they recommend:

 AEI calls for a correction to the formula. Doing so would reduce most tariffs to the 10% minimum floor, ease global trade tensions, and lower the risk of recession — all without abandoning the administration’s stated goals.

Go deeper:

 AEI emphasizes that trade deficits are shaped by many factors, including international capital flows and supply chains, not just tariffs. And even if the formula had merit (which AEI disputes), it was applied incorrectly. Fixing this basic error could offer quick relief to U.S. businesses and consumers while restoring credibility to trade policy.

This is a brief overview of a post from the American Enterprise Institute. For complete insights, we recommend reading the full article.

Related articles

All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
All Topics
Seeding Security: Why Agrobiodiversity Loss Threatens National Security
Center for Strategic and International Studies
·
Nov 18, 2023

Seeding Security: Why Agrobiodiversity Loss Threatens National Security

Summary

Agrobiodiversity loss poses significant risks to food security and may undermine political stability. Protecting diverse agricultural species is crucial for sustaining food production and responding to environmental challenges, per commentary from Center for Strategic and International Studies.

Leans Right
Commentary
·
Climate Change
Read summary
(1 min.)
-->
The presidential debate accomplished more for Harris than it did for Trump
Brookings
·
Nov 18, 2023

The presidential debate accomplished more for Harris than it did for Trump

Summary
  • William A. Galston and Elaine Kamarck at Brookings discuss the importance of presidential debates in addressing voter concerns, highlighting Kamala Harris's effort to define herself and correct misconceptions about her political stance and capabilities.
  • The commentary asserts that Donald Trump's debate performance was inconsistent, often veering off-topic and failing to broaden his appeal beyond his base, indicating a potential challenge for his campaign in attracting new supporters.
Leans Left
Commentary
·
2024 U.S. Elections
Read summary
(1 min.)
-->
“Government Efficiency,” You Say? AEI Scholars Have Ideas
American Enterprise Institute
·
Nov 18, 2023

“Government Efficiency,” You Say? AEI Scholars Have Ideas

Summary
  • James Pethokoukis at American Enterprise Institute writes that the newly announced Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, will act as an external consulting group to the Trump White House, aiming to provide recommendations to streamline government operations by July 4, 2026.

  • The commentary argues that Washington policymakers should examine actionable proposals for improving healthcare, Social Security, and tax reform. These policies emphasize market incentives, fiscal responsibility, and economic growth, as discussed in the AEI report "A Balanced Plan for Fiscal Stability and Economic Growth."
Conservative
Commentary
·
2024 U.S. Elections
Read summary
(1 min.)
-->
Trump gained some minority voters, but the GOP is hardly a multiracial coalition
Brookings
·
Nov 18, 2023

Trump gained some minority voters, but the GOP is hardly a multiracial coalition

Summary
  • William H. Frey at Brookings writes that despite claims of a multiracial transformation, Trump's support remains predominantly among white voters, with only modest gains among Latino or Hispanic voters and minimal shifts among Black voters.
  • The analysis asserts that the long-standing racial voting divide persists, with Democrats retaining significant support from Black and Latino or Hispanic voters, questioning any significant transformation of the GOP voter base.
Leans Left
Research
·
2024 U.S. Elections
Read summary
(1 min.)
-->
In Tied Presidential Race, Harris and Trump Have Contrasting Strengths, Weaknesses
Pew Research Center
·
Nov 18, 2023

In Tied Presidential Race, Harris and Trump Have Contrasting Strengths, Weaknesses

Summary
  • Pew Research Center report shows that the presidential race between Harris and Trump is currently deadlocked, with each candidate receiving 49% support among registered voters. Voters regard Trump as stronger on the economy while Harris is preferred on abortion and personal traits like honesty.
  • The survey asserts that voters are divided on Trump’s actions related to the 2020 election and his age. Additionally, Harris would make history if elected, being the first woman, Asian American, and Black woman president, while Trump would become the oldest person to assume office at 78.
Nonpartisan
Report
·
2024 U.S. Elections
Read summary
(1 min.)
-->
No results found.
Original Read Time
9 min
Organization
The Brookings Institution
Category
Israel-Gaza War
Political Ideology
Center Left

We make expert analysis of current events
simple and accessible for all.

Join us in elevating our public discourse.