Faced with the prospect of the US government imposing higher trade tariffs, European consumers are rethinking what they buy. This column explores how European consumers are reacting to the 2025 US tariff hikes and the reasons behind their responses. European consumers are very willing to switch away from US products, and the more they earn, […]
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%, […]
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 […]
