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Economics

The Political Economy of Trade Wars and Tariff Policies

Quick fact

During the US-China trade war, US consumers bore nearly the entire cost of tariffs, paying about $1.4 billion per month in extra taxes on Chinese goods, while tariffs failed to restore lost manufacturing jobs.

Why this is interesting

Countries can buy the same phone cheaper from abroad, yet governments deliberately make it more expensive. Why would they shoot their own consumers in the foot?