Former Biden officials use tariff data and tear Trump because he’s “wrong”

Former Biden Treasury employee Brent Neiman denounced the Trump administration on Monday by citing a paper on tariffs research, saying the White House “did it wrong.”

In the New York Times Guest essaythe economist addressed the fact that the Trump team justified its own tariff policy by citing the research of three experts on tariffs. But Neiman argued that President Donald Trump’s tariffs were much higher than they should have.

“The US Trade Office published its methodology and cited academic papers produced by four economists, including myself.

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Last week, Trump announced his planned mutual tariffs on imports from various countries.”Release date“A presentation from White House Rose Garden. Trump presented a poster committee that views the total amount of tariffs and other non-tariff barriers other countries are leviing on US exports, and believes it will break the trade obstacles between the US and those countries.

The former finance person wrote in the New York Times that the administration cited a paper on the subject.Mutual Tax Calculation“Report, the economist argued that the president’s team used the study to increase tariff rates much higher than Niemann, and that other experts have.

He added, “I fundamentally disagree with the government’s trade policy and approach, but even taking it at face value suggests that the calculated tariffs should be dramatically smaller, perhaps a quarter larger.”

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Nieman said, “I started by arguing that ending the trade deficit with these countries is not a realistic goal in the first place, as trade imbalances can manifest for many reasons that have nothing to do with protectionism.

He said, “Americans spend more on clothing made in Sri Lanka than Sri Lankans spend on American medicines and gas turbines. Deficit count Of course, do not suggest that you prove unfair competition. ”

“The tariff formula assumes that tariffs placed in one country do not affect imports from other countries and ignore the impact on exports. These assumptions may not work in litigation against one small trading partner, not against the widespread salvo released last week,” he writes.

“Major tariffs on Japanese auto parts can cause an increase in demand for imports from Mexico, and vice versa. Tariffs can clearly lead to retaliation and increase the value of the dollar over time,” Nieman said.

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The former Treasury person also explained how his team’s tariff research was done. China’s exports In 2018 and 2019, a 20% tariff will increase the price of importers’ goods by 19%. This number represents the “pass-thru” rate connected to the formula Neiman worked on. In this case, the pass-through rate is 95%.

The economist wrote that the Trump team used the formula but used a pass-through rate of 25% for reasons they said they couldn’t explain it. “Where did 25% come from? Is that related to our work? I don’t know,” he said.

“Instead, if the trade office had used values ​​that were close to 95% of the numbers from our work, the calculated tariff would have been a quarter of what they were, as I should have done,” Nieman concluded.

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The White House did not immediately respond to Fox News Digital’s request for comment.