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Economics

Tariffs and Their Welfare Consequences

Quick fact

When the United States imposed a 25% tariff on steel in 2018, a study found that the cost per job saved in steel-producing states was over $650,000—far more than the average steelworker's annual salary.

Why this is interesting

Think about a price tag on a foreign-made product. Why do governments add a hidden tax that makes you pay more, even though it hurts your wallet?