Methodology

Presidential Economic Pressure Index — Scoring Framework

PEPIndex · Methodology v1.2.17 · pepi.apiautomations.com

PEPIndex scores each policy event from 0 (full implementation) to 100 (total reversal or abandonment) across six weighted dimensions. The rolling composite is a recency-weighted moving average of resolved event scores.

📄 Methodology overview (Markdown) (principles-level description of the six dimensions, sources and validation) · validation & backtesting · changelog

1. What constitutes a PEPI event

A PEPI event is a public statement or formal action by the President that satisfies all four criteria:

CriterionDefinition
SpecificityIdentifies a concrete action, target, or consequence — not vague rhetoric.
ActionabilityFalls within presidential authority or influence to execute.
MeasurabilityOutcome can be independently verified: was the action taken or not?
MaterialityCarries economic, diplomatic, or policy consequences significant enough to warrant tracking.

2. Event domains

DomainScope
Trade & TariffsImport tariffs, trade deals, sanctions on goods, export controls
Foreign PolicyMilitary force threats, diplomatic ultimatums, territorial claims
Domestic PolicyExecutive orders, government shutdowns, personnel and regulatory threats
RhetoricalLawsuits, boycotts, social media retaliation, interpersonal threats

3. Scoring dimensions

The composite score is a weighted blend of six dimensions. Each is measured independently, and an unmeasured dimension contributes nothing rather than a guessed value.

DimensionWhat it measures
Reversal Magnitude How far the final action deviated from the original threat. For trade events that state an explicit headline rate, it is measured quantitatively from the gap between the announced rate and the rate actually collected, using live USITC applied-rate data. For all other events it is placed on a categorical scale keyed to the outcome type.
Timeline Slippage How far the action slipped past its stated deadline, on a scale that rises quickly for short delays and saturates for long ones. A threat that names no deadline is scored as less credible than one that commits to a date.
Rhetorical Dilution Drop in classifier-assigned severity between the initial threat and the most recent statement matched to the same event. Captures the softening that typically precedes a reversal. Null until such a statement is matched, in which case the dimension contributes nothing rather than assuming no softening — see coverage limits.
Scope Reduction Share of originally targeted entities, countries, or product categories exempted from the final action. Directly informed by the statutory-vs-applied tariff rate gap.
Framing Shift Whether the outcome was reframed as a victory despite being a reversal — the gap between the administration's characterization and independent analysis.
Repetition Pattern Whether this threat has been made and reversed before, measured along a cross-time lineage chain that links each new threat to the resolved prior threat it re-makes. Each prior reversal in the chain raises the score, up to a ceiling. Captures the declining credibility of the serial bluffer.

Reversal Magnitude — trade events (live USITC data)

Where a threat states an explicit headline rate (“a 145% tariff”), the announced rate is extracted at classification time and the reversal is measured against live USITC applied rates rather than from the categorical outcome label: the larger the share of the announced rate that was never collected, the higher the reversal. The published announced rate, applied rate, gap and score for the benchmark events are tabulated on the TACO Index explainer.

Composite and provenance

The composite is a fixed weighted blend of the six dimensions; the weights are held constant within a methodology version and any change is recorded in the changelog with the history rebuilt under the new formula.

Provenance weighting. Every resolved outcome carries an evidence source — a court ruling, a congressional record, a Federal Register document, independently corroborated reporting, or the president's own posts (self-reported). Outcomes evidenced solely by self-reported posts have their Reversal-Magnitude dimension discounted, so an uncorroborated claimed walk-back cannot score like a court-verified one. The evidence source is published on every event in the free API.

4. Rolling index

The rolling PEPIndex is a recency-weighted moving average of all resolved event scores: more recent events carry more weight, and an event's influence decays smoothly with age rather than dropping off at a cut-off. Domain sub-indices (Trade, Foreign Policy, Domestic, Rhetorical) use the same construction filtered to events within each domain.

5. Source cadence

Source ingestion runs several times a day. The public composite index is published daily after validation; per-source freshness is exposed live at /api/v1/sources/status. Each component updates according to its official source release schedule — not all sources are daily.
Source categoryRole / used forCadence
Federal RegisterThreat detection — executive orders, proclamations, presidential memoranda and determinations, and agency notices such as USTR Section 301 actionsDaily (new documents)
Presidential statementsThreat detection — public archive of the president's posts and remarks; feeds the repetition-pattern dimensionContinuous
USITC DataWebOutcome + economic measurement — applied rates (statutory-vs-applied gap)Monthly
Federal court opinionsOutcome resolution — the trade courts, the Supreme Court and the courts hearing executive-order litigation (tariff validity + executive-order legality)Several times a day
Congress.govOutcome resolution — bill actions for legislation-linked eventsPer bill-linked event
eCFROutcome verification — point-in-time CFR snapshots for resolved eventsPer resolved event
Independent-reporting reconciliationOutcome resolution — overdue non-trade events (independent reporting weighted above self-reported posts)Per overdue event
BLSEconomic-impact measurement — CPI component groups, PPI, import prices, employmentMonthly, with the agency's release
FRED (St. Louis Fed)Economic-impact measurement + macro context — CPI, trade balance, S&P 500, VIX, yields, dollar indexDaily / monthly (series-specific)
Equity market dataMarket reaction — S&P 500, VIX and sector-ETF closes around threat/outcome datesSeveral times a day

Threat classification and non-trade outcome reconciliation use large language models with human review. They interpret public-source text into structured events and outcomes — they are not themselves data sources. See the full data-source catalogue.

6. Economic impact measurement

For trade-domain events, PEPI measures real economic consequences using a four-group price-pass-through model. Live measurement runs every cycle on BLS CPI component series grouped into imported/domestic × affected/unaffected, with USITC applied rates and FRED pass-through and incidence series. Per event it publishes the retail pass-through rate, the contribution to all-items CPI, and the consumer share of the tariff cost. Published academic estimates for the 2025 tariffs, including a large retail-scanner replication package, were used only to verify methodology alignment, not as a live input.

7. Calibration events

EventDomainAuthorityScoreOutcome
Section 232 Steel/Aluminum (2018)TradeSection 23234.0Partial reversal
Section 301 China / Phase One (2018–2020)TradeSection 30153.0Partial reversal
Canada/Mexico Steel USMCA Removal (2019)TradeSection 23282.0Full reversal
IEEPA 10% Baseline + Sec 122 (2025)TradeIEEPA, Section 12291.0Full reversal
Liberation Day: 145% on China (2025)TradeIEEPA82.1Partial reversal (28.3% applied)
14-Country Tariff Deadline (2025)TradeIEEPA60.5Delayed
North Korea: Fire and Fury (2017)Foreign95.5Full reversal → summit
Afghanistan: Wipe Off the Earth (2019)Foreign97.0Full reversal → peace deal
Greenland Annexation (2025)Foreign90.5Full reversal → dropped
Russia: Extreme Consequences (2025)Foreign88.0Reframed as summit
Pharma Tariffs 100% (2025)TradeIEEPA, Section 23256.3Delayed

8. Limitations