The centre of controversy surrounding President Donald Trump’s tariff policies is a Chicago economist, Brent Neiman, from the University of Chicago Booth School of Business. He asserts that the administration miscalculated using his academic work alongside three other esteemed economists. In a Monday New York Times Op-Ed, Neiman exclaimed, “they got it all wrong.”
Trump’s recent display of a grand chart during his Rose Garden address raised eyebrows among economists due to its inflated figures. Neiman, witnessing this, questioned, “Gosh, how could those numbers be so high?” The numbers showcased were not actual tariffs against the U.S. but a misinterpretation of the trade deficit with other nations.
Neiman’s work played a part in a 2021 study on tariffs cited by Trump’s team, yet he maintained the administration’s interpretation was flawed. He commented, “I think they grabbed the wrong number from our research… as a result, the deficits they calculated are four times larger than I think they should have got.” Northwestern University’s Martin Eichenbaum noted the administration’s narrow focus on goods, ignoring the significant services exports.
Amid market tumult stemming from tariff realities, Trump showed unwavering resolve, declaring, “It’s the only chance we’re going to have to reset the table on trade… we’re going to come out unbelievably well.” Meanwhile, in his Op-Ed, Neiman insisted that his research does not endorse these reciprocal tariffs and professed his concern over the negative impact on Americans, stating, “The last thing I wanted was my work to be described as leading to these policies, which I think are really bad for Americans.” With no direct contact with the Trump administration, Neiman revealed he has highlighted their mathematical missteps to their awareness.
Chicago economist Brent Neiman disputes the Trump administration’s tariffs math, asserting misinterpretation of his research. Neiman, featured in a New York Times Op-Ed, highlights that the numbers used were inflated and wrong. Economists urge accuracy in trade metrics involving both goods and services. Neiman insists his work should not support these policies, warning of their harmful effects on Americans.
In summary, the Chicago economist Brent Neiman criticises how the Trump administration has interpreted economic data to support its tariff policies. His research was misrepresented, leading to inflated numbers regarding trade deficits. Economists emphasise the need for accurate representations of both goods and services in trade discussions. Ultimately, Neiman asserts that his work should not be associated with the current tariffs, which he believes are detrimental.
Original Source: abc7chicago.com
