Economist Neiman has expressed strong dissent over the Trump administration’s application of his research to justify tariffs, identifying significant flaws in the calculations. He questioned the logic behind the enormous rates set, suggesting that reciprocal tariffs should genuinely reflect the treatment countries give to the U.S., which is not mirrored by the current tariff levels imposed.
Neiman elucidates that the Trade Representative’s methodology wrongly assumes a singular focus on eliminating the U.S. trade deficit with individual countries, which is both flawed and unrealistic. He argues that trade imbalances can arise from diverse factors not necessarily linked to protectionism, emphasising that these discrepancies reflect varying resources and levels of development, not necessarily unfair competition.
Though acknowledging valid concerns surrounding the overall U.S. trade deficit, Neiman contends that such reasoning does not apply to a one-on-one basis with each country. He critiques assumptions made in the tariff model, noting that they neglect the complex interdependencies of international trade and fail to account for export consequences when one country faces tariffs.
Highlighting the systemic impacts of these tariffs, Neiman warns that the recent tariffs could drive U.S. average rates to unprecedented heights in over a century. The tariffs affect not only significant trade partners like China and the EU but also smaller nations such as Jordan and Zambia. Despite claims of a fair trade policy, Neiman argues that the calculations deviate from being equitable, failing to embody the essence of the biblical golden rule.
The Trump administration has introduced a 10% baseline tariff on all imports, with increased duties on selected imports such as Italian coffee and Japanese whisky. Defending these tariffs as necessary responses to foreign duties, Trump asserts that they will enhance domestic industry and employment.
Economist Neiman criticises the Trump administration for misapplying his research to justify tariffs, citing numerous calculation flaws. He argues the tariffs unfairly target imports without considering the broader implications on trade relations and exports, warning that they could raise average tariff rates to a century high. Neiman stresses that the approach misrepresents trade dynamics and fails to embody fair trade principles.
In summary, economist Neiman’s critique of the Trump administration’s tariff strategy highlights numerous inconsistencies in their calculation methods, asserting that trade imbalances stem from natural variances rather than protectionism. The proposed tariffs risk elevating average tariff rates significantly while failing to ensure fairness in trade. Ultimately, the strategy may undermine U.S. exports and international relationships, challenging the notion of a just trade policy.
Original Source: m.economictimes.com
