#TrumpTariffs : A Public Economics Perspective

Trump-era tariffs aimed to protect domestic industries by imposing duties on imports, particularly from China. While they generated short-term revenue and aimed to revive U.S. manufacturing, they also raised consumer prices and disrupted global supply chains. Tariffs function as a form of indirect taxation, shifting the burden onto consumers and importers. In the long run, such trade barriers can lead to inefficiency and retaliation from trade partners. From a public economics viewpoint, the policy’s costs—economic distortion and higher prices—often outweighed its benefits. Evaluating trade policies requires balancing national interests with global economic cooperation.