Impact of Tariffs and Trade Wars on the U.S. Economy

SOURCE www.npr.org
Many Americans believe tariffs will help the U.S. economy despite economists warning of the negative effects. Research on the 'China Shock' has shown devastating impacts on American communities due to increased Chinese imports. The China Shock economists advocate for greater government intervention in markets to support affected workers and communities.

Key Points

  • Research on the 'China Shock' highlights the negative impact of increased Chinese imports on American communities
  • Economists are reevaluating trade policies and advocating for greater government intervention
  • Tariffs can be detrimental to the economy but may have a role in nurturing strategic industries

Pros

  • Tariffs can protect domestic industries from foreign competition
  • Can be used strategically to nurture growing industries and create jobs

Cons

  • Can lead to higher prices for consumers
  • May harm the economy, especially the manufacturing sector