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Economics

The Political Economy of Trade Policy Formation

Quick fact

The U.S. sugar tariff costs Americans about $1.4 billion per year in higher prices, but it remains in place because the few hundred domestic sugar producers are concentrated and organized, while the millions of consumers are not.

Why this is interesting

Why do governments often impose trade barriers that seem to hurt the national economy? The answer lies not just in economics, but in the messy interplay of politics and power.