Feb 2, 2025 · Policymakers must carefully weigh the short-term advantages against the long-term consequences to avoid unintended disruptions in domestic and global markets. Below, we explore higher tariffs' key pros and cons to understand their economic impact better.

2 days ago · It had announced a 25% additional tariff on imports from Canada and Mexico, and a 10% additional tariff on imports from China; it spared imports of energy resources from Canada with a lower 10% ...

While higher tariffs can offer short-term benefits, such as protecting domestic industries and creating jobs, they can also lead to economic challenges in the long run, including higher consumer prices, reduced global trade, and retaliation from other countries.

2 days ago · During his presidential campaign, President Trump pledged to impose universal tariffs of 10–60% on all U.S. imports—a whopping $4.2 trillion in goods and services purchased from abroad in 2024. This was always a real possibility. The International Economic Emergency Powers Act gives the president broad authority to do so. In early February the Trump …

Oct 15, 2024 · But most view tariffs as ineffective and outdated tools to correct a country’s growing trade imbalance. This has led some to warn that tariffs typically end up harming the exporting country but also consumers and businesses from the importing nation. Two recent tariffs, imposed in the pre-Trump era, support those findings.

Jan 21, 2025 · Economists are often sceptical about their value, but tariffs have been a relatively standard feature of economies for millennia. The term “tariff” appeared 23 times in the most recent World Economic Forum Chief Economists Outlook. And for good reason.

Sep 25, 2024 · To be clear, tariffs do impose costs that are not captured as revenue. One of these is what economists call “deadweight loss,” created when resources are used less efficiently than they could be.

Oct 16, 2024 · Economists have grown increasingly cool to tariffs. If carefully implemented, they occasionally yield positive results for vulnerable domestic industries, Golara acknowledged. But most view...

Oct 21, 2024 · Tariffs, also known as duties or levies, are deterrents. They penalize domestic firms that import foreign-made goods to encourage companies to source more of those items within the country.

Jan 31, 2025 · Tariffs are duties on imports imposed by governments to raise revenue, protect domestic industries, or exert political leverage over another country. Tariffs often result in unwanted side...