Repealing Tariffs Would Be a Simple Option to Boost Economic Growth

 Repealing Tariffs Would Be a Simple Option to Boost Economic Growth

Of the many tax policies modeled in our new Options for Reforming America’s Tax Code 2.0, repealing the tariffs imposed under President Trump’s administration would be one of the simplest ways policymakers could boost economic growth.

Starting in 2018, the U.S. imposed tariffs on a variety of goods, including aluminum, solar panels, steel, and washers and goods from the European Union and China. About $460 billion worth of goods were subject to the tariffs, raising prices for consumers. In fact, we estimated the tariffs were about an $80 billion annual tax increase, reducing consumer purchasing power.

Advocates of tariffs argue that by making imported goods more expensive, benefits will accrue to domestic producers. However, recent research on tariffs shows that the negative effects on consumers and other producers that rely on imported goods as inputs more than offsets any temporary benefits for specific…

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