Donald Trump plans to reinstate tariffs on imports if he becomes president again. Richard Koo, a chief economist, believes these tariffs may have some economic benefit. Decades of trade deficits and a strong dollar led many Americans to feel they lost out from free trade, supporting Trump's protectionist policies. However, economists generally oppose tariffs as they increase costs for consumers. The Biden administration has focused on industrial policies instead of tariffs to boost domestic manufacturing.
Former President Trump is proposing tariffs, or taxes on imported goods. He plans to levy a 10% tariff on all imports and at least 60% on Chinese products. Critics warn that these tariffs would increase consumer prices, potentially offsetting any economic benefits. While the Biden administration has maintained some tariffs from the Trump era, his stance on future tariffs is unclear. Experts suggest paying attention to this policy difference as the candidates secure nominations.
