the "incredibly dumb formula" does not =67
you dont need to find some media outlet to tell you random lies.. you can do the math yourself
I did and it is 0.67 aka 67%
In case of US trade with China,
2024 numbers, in millions USD:
(exports - imports) / imports = (438947.4 - 143545.7) / 438947.4 = ~0.673
Just admit it already, you divided by the wrong number (exports instead of imports). Imports is the larger number, thus deficit. How many more walls of text are you gonna post about your math error?
did you even read the findings of the formula explainer on the ustr page.. even the explainer says when doing it for all countries the average ends up as 2 in the long run
Those "findings" are utter bullshit, but math is math and you should at least be capable of grasping that the "2" they're talking about is not the tariff or the discount, but the elasticity value they didn't even use in the formula (which is irrelevant anyway because it's cancelled out by the other random value they picked). Emphasis mine.
To calculate reciprocal tariffs, import and export data from the U.S. Census Bureau for 2024. Parameter values for ε and φ were selected. The price elasticity of import demand, ε, was set at 4.
Recent evidence suggests the elasticity is near 2 in the long run (Boehm et al., 2023), but estimates of the elasticity vary. To be conservative, studies that find higher elasticities near 3-4 [...] were drawn on.