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Message: <blockquote data-quote="fishtm2001" data-source="post: 6098070" data-attributes="member: 54375">Conservative economists at the American Enterprise Institute say that when the Trump administration came up with these tariff rates, it neglected to use as a basis the elasticity in the response of import prices to tariffs, instead of retail prices and since the administration mixed that up, the entire computation is wrong and these tariff rates are set four times too highAEI economists Kevin Corinth and Stan Veuger argue that had they used a correct calculation, then it “would reduce the tariffs assumed to be applied by each country to the United States to about a fourth of their stated level...Our view is that the formula the administration relied on has no foundation in either economic theory or trade law.”</blockquote>