- **Q: What's the main criticism of Trump's new tariff calculations?
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Politics / Trade Policy
The Trump administration's recent announcement of sweeping global tariffs has ignited immediate controversy, not only due to potential economic repercussions but also because of the highly questionable mathematical formula reportedly used t...
The controversy began shortly after President Trump announced the new tariffs. Economic journalist James Surowiecki quickly deduced the likely formula, calling it "extraordinary nonsense." Despite the White House releasing a formula incorporating Greek letters seemingly for sophistication, subsequent analysis confirmed Surowiecki's findings. Experts like Catherine Rampell, Steve Liesman (CNBC), Douglas Holtz-Eakin (American Action Forum), and British journalist Ian Dunt have all condemned the methodology as fundamentally flawed and lacking rational economic basis. Dunt compared it to calculating mortgage rates by dividing kitchen apples by bagels.
This incident isn't isolated. During the pandemic, a White House team led by economist Kevin Hassett (now back as director of Trump’s National Economic Council) similarly tried to create econometric and "cubic" models for COVID-19 that predicted politically convenient but ultimately inaccurate outcomes.
The potential real-world impact is significant. Senator Susan Collins highlighted the harm price hikes from tariffs would inflict on families in Maine, especially those least able to afford them. The tariffs threaten to disrupt global markets and could escalate trade tensions.
In response to these concerns and the perceived executive overreach, a bipartisan effort is underway in Congress. Senator Chuck Grassley (R-IA) and Maria Cantwell (D-WA) introduced the "Trade Review Act of 2025" in the Senate. This bill aims to restore Congressional authority by requiring the President to explain and justify tariff decisions to Congress and allowing lawmakers to vote on ending the levies. Rep. Don Bacon (R-NE) has announced plans to introduce a companion bill in the House, stating, "Nebraskans want free trade agreements, not trade animosity." This legislative pushback underscores a growing unease, even within the President's own party, about the current approach to trade policy. Adding to the concern are reports quoting White House sources suggesting the President, who allegedly personally selected the formula, is indifferent to negative feedback or consequences.
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What are your thoughts on the administration's method for calculating these tariffs? Do you think Congress should have more control over trade policy? Let us know!
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