Researchers Analyze the Impact of the Latest Trump Tariffs

President-elect Trump has pledged to implement 25% tariffs on all imports from Canada and Mexico, as well as tariffs up to 60% on goods from China as soon as he takes office. But what will these protectionist measures achieve? Examining the impact of the 2018–19 U.S.-China trade war could offer some insight. Studies revealed that the tariffs did not decrease the cost of Chinese imports, resulting in higher prices for U.S. consumers. Additionally, no significant increase in manufacturing jobs in the U.S. was observed, and industries targeted by retaliatory tariffs suffered. Moving forward, strategies adopted by companies to mitigate the effects of a potential trade war with China, such as friend-shoring, may not prove effective in countering future protectionist policies that create new trade barriers with nations like Mexico and Canada.