Incorrect specs on tires? What are my options....

Check the trailer's leaf springs. Do they still have a normal arc or are they flattened? If they are flattened get new ones. Leaf springs are inexpensive, you could even upgrade to the next higher capacity.

Also, have you weighed the trailer? Is it overloaded?

Either of the above will have the trailer riding lower than normal.

Flipping the axles, as Huntindog said, will raise the trailer. That will help with the hitch also.

I think I have read that Correct Track lifts the trailer. Maybe 2", not sure.