Share

Follow

News| | Publish on

How Tariffs Work—And What Economic Studies Show about Their Real Impact

President Donald Trump is threatening steep tariffs on virtually all imports. Here’s what that means and what economics research suggests would be the impact

How Tariffs Work—And What Economic Studies Show about Their Real Impact
How Tariffs Work—And What Economic Studies Show about Their Real Impact

Image Source : https://www.scientificamerican.com/article/how-tariffs-work-and-what-economic-s… , Used Under : CC BY 4.0

Tariffs have been a major focus of President Donald Trump's second term, causing confusion and uncertainty in the stock market and among consumers. Economists agree that tariffs are inefficient and bad for consumers, as they artificially raise prices and create a deadweight loss in the economy. Traditionally, tariffs are used to protect local producers by making imported goods more expensive. However, this can lead to retaliatory tariffs and trade wars, ultimately hurting both consumers and producers. Tariffs can also disrupt supply chains and have negative effects on economic growth, employment, and inequality. Overall, tariffs are seen as a blunt and ineffective tool that can have far-reaching consequences on the economy and people's daily lives. It is important for policymakers to carefully consider the impacts of tariffs and seek alternative solutions to promote economic growth and trade.

Author Name: Meghan Bartels

Images and videos Credit to this Website