Tag #Misuse Of Research

How does the model used in the research account for the trade deficit between countries and its potential influence on the outcome of a trade war?

Pujolas's research, using a supercomputer model and 2014 data, indicates that optimal tariffs could benefit a nation with a large trade deficit. The model suggests that, under specific conditions, tariffs could outweigh potential economic damage. However, the White House's application of this research differs significantly, as it applied tariffs beyond what Pujolas's model suggests as optimal.