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How tariffs slow an economy (the simple mechanics) Higher import prices → weaker demand. Tariffs raise the cost of imported inputs and final goods. Companies either pay more for raw materials and intermediate goods (squeezing margins) or pass…
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Why tariffs are so critical to electronics Supply chains globally: A single smartphone has pieces from 30+ countries (chips from Taiwan, screen from South Korea, sensors from Japan, assembly in China, software from the U.S.). Tariff on any…
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1. Increasing Coffee Prices Are Damaging Consumers Since last year, coffee prices in the United States have jumped close to 21%. For some, this isn't just an item on an expense sheet—it's part of their daily routine, their…
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Are Tariffs the "New Normal" in International Trade? The landscape of global trade in recent years has changed in ways that are not so easily dismissed. The prevalence of tariffs as a leading policy tool appears, at least…
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What is a Global Value Chain (GVC)? Before examining tariff impacts, it is helpful to clarify what a GVC is: production today is seldom monochrome. A finished product (say, a smartphone or a textile garment) may involve: Raw…
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What "Distributional Effects" Are When economists refer to distributional effects, they're wondering: How do tariffs' costs and benefits fall on society's various groups? Tariffs don't only increase the price of foreign goods—they redistribute income among con…
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What is the Foreign Pollution Fee Act? The Foreign Pollution Fee Act is a U.S. Senate bill that would charge tariffs—or "fees"—on foreign products based on how much pollution was created when they were made. That is, if…
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What "Terms of Trade" Actually Is Terms of trade (ToT) quantify the value of a nation's exports in relation to its imports. Simply put, it is the rate at which you exchange what you sell to the world…