2 thoughts on “Repeat after me: tariffs primarily hurt domestic consumers – not foreign exporters”

  1. Posted 01/11/2016 at 10:43 | Permalink

    I have been making the points made in this article to anyone who will listen, but most people seem not to understand these basic truths.

    Ryan Bourne says: “it hurts the economy negatively twice: through raising consumer prices directly and insulating domestic firms from competition that enhances innovation and productivity.” In fact, I would add a third way that tariffs hurt the economy – through distorting economic decision-making. Investors may decide to invest in industries in a country due to the effect of tariffs, rather than where they would be most efficiently located. Given that the same money cannot be invested twice, this may be to the cost of more competitive industries that are not protected by tariffs.

  2. Posted 01/11/2016 at 18:05 | Permalink

    I agree … tariff-free trade

    I disagree … ‘Many Brexiteers suggest we should seek to compensate exporters whose products might face EU tariffs with subsidies or tax breaks to leave their trading positions unchanged’

Leave a Reply

Your e-mail address will not be published.