I'm interested in understanding the economic implications of trade tariffs, particularly how they affect consumer prices and domestic industries over different time horizons. In the short term, tariffs can lead to increased prices for imported goods, which might benefit domestic producers by reducing foreign competition. However, do these benefits outweigh the costs to consumers? How do these dynamics play out in various sectors, and what empirical evidence supports these outcomes?
I would appreciate insights backed by economic theory and research.
How do trade tariffs impact consumer prices and domestic industries in the short and long term?
byu/daverskully inAskEconomics
Posted by daverskully