Trump’s tariff formula used the wrong value in its calculations, conservative think tank says. ‘This whole thing was rigged.’

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"What's driving the policy, is that since the 1980s Trump has been a protectionist, and he thinks trade deficits are losses and trade surpluses are profits," AEI's Stan Veuger told Fortune.

Cavallo himself also addressed the fact his work was referenced in the USTR’s report.“It is not entirely clear how they use our findings,” Cavallo wrote on X last week.“Based on our research, the elasticity of import prices with respect to tariffs is closer to 1.

"What's driving the policy, is that since the 1980s Trump has been a protectionist, and he thinks trade deficits are losses and trade surpluses are profits," Veuger said."He just likes tariffs.

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Article Details

Author / Journalist: Paolo Confino

Category: EconomyBusiness

Markets: United States

Topics: Tariffs and trade Tariffs Donald Trump Imports U.S. economy Markets

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-04-08 @ 00:52:00 (14 hours ago)

News Timezone: GMT +8:00

News Source URL: fortune.com

Language: English

Article Length: 900 words

Reading Time: 5 minutes read

Sentences: 6 lines

Sentence Length: 150 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Fortune

News ID: 27694313

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About Fortune

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Official Website: fortune.com

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