Tariffs raise prices the average price of goods, but leave local goods slightly cheaper.
Tariffs work for the economy, if all your trading partners just suck it up and take the hit. But they won't, and in the end the reduction in trade makes the economy poorer.
Trump is likely going to claim that he can force that outcome - force all other countries to suck it up "or else". The first country that does countervailing duties will be hit with ever-escalating tariffs by Trump. The problem is, every country is going to do it. A world-wide trade war will tank the stock market and the economy.
Tariffs work for the economy, if all your trading partners just suck it up and take the hit. But they won't, and in the end the reduction in trade makes the economy poorer.
Trump is likely going to claim that he can force that outcome - force all other countries to suck it up "or else". The first country that does countervailing duties will be hit with ever-escalating tariffs by Trump. The problem is, every country is going to do it. A world-wide trade war will tank the stock market and the economy.
