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The 2025 trade war: Dynamic impacts across US states and the global economy

GLOBAL BUSINESS AND FINANCE MAGAZINE
June 10, 2025
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In 2025, the US government announced a series of tariff increases targeting major trading partners, including Canada, China, and Mexico. This column estimates the economic consequences of these proposed tariffs to the US and globally. According to this model, real wages in the US decline by 1.4% in 2028 and GDP falls by approximately 1%, […]

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Tariffs cannot fund the government: Evidence from tariff Laffer curves

GLOBAL BUSINESS AND FINANCE MAGAZINE
April 28, 2025
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Until the late 19th century, states raised most of their government revenues from import tariffs. This column asks whether the practice could work today. A side effect of taxes is that they discourage the economic activity that they are assessed on. Tariffs are taxes on imports and no different: they shrink trade. The authors allow […]