Brent Neiman Hits Back: Trump Administration Falls Short in Applying Economist's Tariff Research
Trump administration distorts renowned economist's study findings
Hop on this informative drip! Brent Neiman, a renowned economist, jointly published a paper with colleagues on the effects of tariffs. The Trump administration twisted this research to push its trade policies, leaving Neiman displeased.
In the global trade standoff, Neiman, who previously served under President Joe Biden in the Treasury Department, slammed the White House for twisting his research. According to an op-ed in The New York Times, misconstruing trade imbalances as solid evidence of unfair trading practices was the "biggest blunder" by US Trade Representative Jamie Greer.
Politics: Little Opposition to Trump So Far; Key Cracks Among Republicans Earlier, Neiman's research group examined the impact of tariffs on US prices. Greer used this research last week to explain the rationale behind Donald Trump's new tariffs.
"I dispute the administration's trade policy and stance," Neiman penned. The Trump administration mistranslated Neiman's research with three other economists to imply that domestic prices would only slightly increase with tariffs. However, their paper indicates that the cost of imported goods into the US would "almost equally shoot up as the tariff rate."
Politics: Silberhorn on Trade Conflict: Trump's Tariff Policy Follows 'Second Agenda' On Wednesday, Trump imposed the broadest import tariffs yet, affecting nearly all products and countries worldwide. Countries such as China, along with developing countries in Africa and Southeast Asia, which have a significant trade surplus with the US, have been hit hard.
The Trump administration's calculations have attracted criticism and mockery from economists. Larry Summers, a former US Treasury Secretary and economics professor, wrote on X that Trump's reciprocal tariffs are as far from their stated purpose as astrology is from astronomy.
Source: ntv.de, jpe/AFP
- USA
- Tariffs
- Donald Trump
- Trade Conflicts
Enrichment Data: Neiman's research undoubtedly impacted the Trump administration's justification for its trade policies. However, Neiman argues the administration misinterpreted and misapplied his work. The Trump administration cited Neiman's study to justify its reciprocal tariff policy, aiming to tackle trade deficits with other countries [1][2]. However, Neiman contends that the administration's calculations were inaccurate. He believes they used incorrect numbers from his research, leading to structurally higher tariff rates compared to what his work suggests [2]. Neiman also disagrees with the foundation of the policy, stating that trade gaps are not solely due to protectionism and that tariffs may lead to unintended consequences like retaliation and higher costs for US consumers [2]. Neiman's critique highlights the disparity between his academic findings and their application by the Trump administration, despite the research being cited. Meanwhile, Neiman asserts that his research does not validate the high tariff rates imposed by the administration, indicating a misunderstanding or misuse of his data [1][2].
- Brent Neiman, the economist highlighted in the article "Brent Neiman Hits Back: Trump Administration Falls Short in Applying Economist's Tariff Research," publicly disputed the Trump administration's misinterpretation of his research on the effects of tariffs.
- In response to the Trump administration citing Neiman's research to justify reciprocal tariff policies, Neiman argued that the administration misapplied his work, leading to structurally higher tariff rates compared to what his research suggests.
- The Trump administration's employment policy, in relation to tariffs, was also criticized by Neiman as he disagreed with the foundation of the policy, stating that trade gaps are not solely due to protectionism and that tariffs may lead to unintended consequences like retaliation and higher costs for US consumers.
