Peterson Institute for International Economics on Mythryl: “Part 2: One of the biggest impediments to "optimal" tariffs…”

Peterson Institute for International Economics

Part 2: One of the biggest impediments to "optimal" tariffs improving national welfare is that it is US households & businesses who have borne most of the burden of Trump's tariffs in practice. Read here:

piie.comWho pays for tariffs? Insights from recent researchThe Trump administration has mounted many varied claims to support its trade war, but a central argument is that foreigners, not US citizens, pay the price for tariffs. As discussed in our first blog,...

Peterson Institute for International Economics@piie.com

"Optimal" tariffs are misnamed, @kclausing.bsky.social & Maurice Obstfeld write, & do not lead to a net gain in national welfare in practice—in fact, they harm US interests. Tariffs are also not an efficient way to shift tax burdens from US residents onto foreigners.

piie.com“Optimal tariffs” are far from optimal: Part 1Advocates of President Donald Trump's tariff policies often bash economists for ignoring real-world complexities. Yet administration officials happily invoke the abstract theoretical concept of the "o...

3/8/26, 3:26 pm3 reposts5 likes

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