However, history and research have shown that the economic effects often fail to live up to the hype. On Tuesday, the Biden administration announced the latest iteration of American import taxes: a wave of new and heightened tariffs on Chinese exports across a slew of industries deemed strategic to national security.
“Most economists view tariffs as a bad idea because they prevent a country from reaping the benefits of specialization, disrupt the movement of goods and services, and lead to a misallocation of resources,” Sweet wrote. “Consumers and producers often pay higher prices when tariffs are implemented.” That’s because tariffs tax imports when they come ashore, adding costs for US distributors, retailers and, ultimately, consumers.
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