Who pays for tariffs? Insights from recent research
· piie.com
The Trump administration has mounted many varied claims to support its trade war, but a central argument is that foreigners, not US citizens, pay the price for tariffs. As discussed in our first blog, even if one thought it appropriate to foist tax burdens onto foreigners, there are more efficient and effective ways to do so. Further, multiple practical issues impede the use of so-called optimal tariffs to improve national welfare.
The Trump administration has mounted many varied claims to support its trade war, but a central argument is that foreigners, not US citizens, pay the price for ...